Accepted for Publication By the Journal of Information Science: http://jis.sagepub.co.uk Information Asymmetry and product valuation: an exploratory study Waseem Afzal 1 School of Library and Information Management, Emporia State University, Kansas, USA. Daniel Roland School of Library and Information Science, Kent State University, Ohio, USA. Mohammad Nasser Al-Squri Department of Library and Information Science, Sultan Qaboos University, Oman. Abstract. This paper reports on the impact of information asymmetry on product valuation. Symmetric versus asymmetric information was provided to two different groups of subjects. The subjects were then asked to value an information technology product. The study found significant difference in the valuation between two groups. The group with the symmetric information valued the product highly and in close proximity to the real worth of the product; whereas the group with asymmetric information undervalued the product. The current study offers a new perspective for information science and an interesting avenue for future research, which, if pursued, can enrich our understanding of human information interaction and valuation process. Keywords: Information; Asymmetry; Valuation; Product 1. Introduction Information asymmetry is a condition where different parties in a transaction have different sets of information. Information symmetry, on the other hand, ‘is a condition in which all relevant information is known to all parties involved’ [1]. According to Akerlof [2] information asymmetry develops when the seller has more information than the buyer. Varying levels of product quality creates an opportunity for sellers to sell an inferior product as a superior one; however this diversity in quality makes it difficult for buyers to evaluate a product with complete 1 Correspondence to: Waseem Afzal, School of Library and Information Management, Emporia State University, 1200 Commercial St, Box Number4025, Emporia, Kansas, USA. Email: wafzal@emporia.edu. Journal of Information Science, XX (X) 2008, pp. 1–14 © CILIP, DOI: 10.1177/0165551506nnnnnn 1 JIS-0719 - v5 Received: 26th February 2008 Revised: 15th July 2008