Provision of information is a policy used by governments to fix information asymmetries. This occurs when one side of a market transaction has more or better information than the other.
Governments use this policy to:
- Require businesses to provide clear product labels and mandatory disclosures.
- Run public awareness campaigns to educate the public.
- Increase market transparency and lower the risk of fraud.
- Help consumers make informed choices without limiting their freedom to buy what they want.
Categories: