Information Asymmetry in Management Research: Past Accomplishments and Future Opportunities:

Information asymmetry is a condition wherein one party in a relationship has more or better information than another. The information asymmetry concept is widely diffused throughout management research, and its existence is a core assumption within leading theories on organizations. Despite information asymmetry’s central role, however, there have been no systematic reviews of the management literature using the concept. As a result, there is no established level of knowledge of information asymmetry as a management concept, nor is there a unified basis for directing future research leveraging the concept. In response, we review 223 relevant articles from leading management journals and develop a framework for organizing and assessing information asymmetry research. We consolidate understanding of information asymmetry’s meaning, conceptual applications, roles in different theoretical models, antecedents, and how focal actors’ self-interests influence the selection of mechanisms for managing it. Further, ...