Information Work Asymmetric Information

With the development of the social informatization and market economy,information has become a kind of commodities and enters the market circulation systemgradually. So information consulting industry is flourishing as the information providingbusiness. Information consulting can solve enterprises’ information bottleneck problemsand help them develop business healthy and stably. In information consulting service,consultants and clients focus on minimizing the negative effects that come frominformation asymmetry during information consulting work, meeting the needs ofinformation users, protecting the legitimate rights and interests of users, and creating ahealthy environment to develop the information consulting market.This article introduces the theoretical basis and studying object firstly–information asymmetry theory and information consulting industry. This articleassociates the information asymmetry theory with information consulting industry andproposes the article’s research topic—the study of information asymmetry in theinformation consulting works.And next, this article analyzes the situation of information asymmetry in theinformation consulting business and elaborates the analysis from two different aspectsof phenomena and problems. First, according to the three stages of consulting work,proposing the form of information asymmetry. And then, creating a model to analyzetwo issues caused by information asymmetry. These two issues include the adverseselection at the selection phase and the ethical risks at the consulting companyimplementation stage.Through combining these phenomena and problems that talked above, this articleprovides a detailed analysis for the formation mechanism and specific reasons ofinformation asymmetry in consulting work by analyzing the agency by mandate andopportunism. Finally, by aiming at the reasons for these issues, this article proposes themechanism design that contains two key points and four dimensions to solve theinformation asymmetry problem hierarchically. The innovation of this article is using a new perspective researching theinformation asymmetry in information consulting work, and considering the reasons andsolutions for the information asymmetry analysis which was just limited in phenomenain previous. This article focuses on making an in-depth analysis of the reasons for theformation mechanism of information asymmetry problem by combining the informationeconomics and game theory,and also proposes the mechanisms designing and suggestions to minimize the “adverseselection” and “ethical risks” problems and ensure the healthy and sustainabledevelopment in information consulting services market.