Informational advantages: Will they continue to be abused and why?

Question

I believe that informational advantages tend to be abused. Because of the utility theory of information, they will continue to be abused because the public chooses not to afford a more extensive search and values late information less.

Do you agree or disagree? Why? And, if you agree, how might we solve the problem?

Answer 1

I think economics is the right place for this post -- asymmetrical information economics won 3 guys a Nobel prize in 2001.  I'm not a game theory expert, so someone might be able to offer a better assessment, but I will give my two cents.  

Clearly, as long as a profit stands to be made, someone will be finding a way to exploit asymmetrical information.  Not only does the public often choose to be less informed because of the cost of gaining additional information, but there is often an incentive for sellers to mis-represent their product if they know something that the buyer doesn't (for example, if I know my car has a bum transmission but I tell you it's in great shape so I can get more money from you).  Politicians misrepresent each other all the time because they know most people will not take the time to go research what is actually the truth.  

I really do not know enough about the topic to go much further, but you have sparked my curiosity enough for me to find some further reading that will help both of us to learn more about this interesting subject.  On the wikipedia links, of course, read the references section.  Your public or school library may offer access to JSTOR and other academic article indices that will let you read the scholarly articles, which is where the good stuff is at.  See below.