An Analysis on Mechanisms to Solve Information Asymmetry Problem

G.Akerlof found information asymmetry problem in second-hand car market and thought that because of asymmetric information,the used-car market would eventually tend to shrink to disappear.But the reality is that the second-hand car market still existence because there are lots of mechanisms to solve the problem of information asymmetry.In this paper,the causes and mechanisms of asymmetric information are analyzed.The result shows that market,institution and social network would be the main mechanisms to solve the problem of information asymmetry.People would have a more comprehensive understanding on mechanism to solve asymmetric information problem and get some enlightenment through the analysis.