definition for: #InformationAsymmetry

The entire theory of finance rests upon measuring: 1. The value of expectations (otherwise known as ‘interest rates’) and 2. Their impact on Intrinsic Value. It follows that, under Information Symmetry (across time, season, place, social hierarchy, etc.) the future value component of Present Value, impacts Current Price to the extent it fully reflects Intrinsic Value. Conversely, under Information Asymmetry, Current Price reflects biased Intrinsic Value, which assures high benefits to those economic agents hoarding access to unbiased information. Ultimately though, Exponential Production Growth drops below Exponential Population Growth, which makes living standards unsustainable for all economic agents.