Information asymmetry and product valuation: an exploratory study

This paper reports on the impact of information asymmetry on product valuation. Symmetric versus asymmetric information was provided to two different groups of subjects. The subjects were then asked to value an information technology product. The study found significant difference in the valuation between two groups. The group with the symmetric information valued the product highly and in close proximity to the real worth of the product; whereas the group with asymmetric information undervalued the product. The current study offers a new perspective for information science and an interesting avenue for future research, which, if pursued, can enrich our understanding of human information interaction and valuation process.