Information Asymmetry

Screening
A process by which an uninformed party elicits information from parties with private information, often in the context of economic interactions involving asymmetrical information distribution.
Information Asymmetry
Information asymmetry occurs when one party in a transaction has more or better information than the other party.
Lemon
An unsatisfactory product where quality cannot reliably be checked before purchase.
Separating Equilibrium
An equilibrium in which agents with different characteristics choose different actions.