asymmetry
ay-SIM-i-tree
/eɪˈsɪmɪtri/
Lack of equality or equivalence between parts or aspects of something; in economics, unequal distribution of information among parties in a transaction.
Information asymmetry means one party knows key facts that the other party does not, creating an unfair advantage or market breakdown.
The story behind the word. From Greek 'asymmetria', combining the negative prefix 'a-' with 'syn' (together) and 'metron' (measure). It originally referred to non-matching geometry before George Akerlof brought 'information asymmetry' to the heart of economic theory in 1970.
Word relationships
- imbalance: Imbalance is a general term for unequal weight or proportions, whereas asymmetry highlights non-mirroring or unequal knowledge structures.
- symmetry: Symmetry denotes exact equality and structural balance across both sides.
Commonly confused with
- inequality: Inequality usually refers to unequal income or distribution of wealth, whereas information asymmetry refers specifically to unbalanced knowledge.
Word family
- asymmetric (adjective): Lacking symmetry or equal balance.
- asymmetrically (adverb): In an unequal or unbalanced manner.
Collocations
- information asymmetry
- marked asymmetry
- structural asymmetry
Example sentences
- "Information asymmetry allows sellers of used cars to know defects that buyers cannot detect before buying." Used car market research
- "Insider trading regulations aim to reduce information asymmetry between corporate executives and retail investors." Financial markets policy
Memory hook
A- (not) SYMMETRY (balanced) = Unbalanced knowledge. One side knows more.
When not to use
Do not use to describe simple differences in wealth or size; reserve for non-matching structural or informational balance.
Fun facts
- George Akerlof won the Nobel Prize in Economics in 2001 for his famous paper on information asymmetry titled 'The Market for Lemons'.
Related words
Explore more words
asymmetric, disparity, disproportionate, discrepancy, disparate, symmetry
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