Information Asymmetry In The Customs Agent Industry And Governance

Principal-Agent relationship is a contractual relationship born in the background of "professionalism". A principal pays an agent for services in particular areas. In market economy, agents’behaviors can improve the market efficiency and reduce the costs of social production. However, there is always the problem of "Information asymmetry" going along with the market economy, which could lead to "Moral hazard" and Reverse selection" and triggera series of market and social problems.Customs agent business serve the import and export companys where the "Information asymmetry" exists as well. "Reverse selection" is characterized by vicious competition, even high quality service but still not high operating profit, low profits and unsustainable, and drain of professional personnel. "Moral hazard" is characterized by arbitrary charges, malicious extortion, and illegal competition.In the information age, the development and popularity of the Internet makes it possible to alleviate the information asymmetry. Same as an agent business, airplane ticket agent industry has developed rapidly in recent years and has gained some successful experiences. Especially with the rising of Online Travel and comparison search engine, ticket agents have been operating in an open and transparent competitive market. New information technology enablesclients to evaluate ticket agencies and make the results public, which improves client’s right to speak, broaden the channels of information disclosure, and curb infringement in ticket agent effectively. The experiences of ticket agent industry are valuable for thecustoms to alleviate the information asymmetry using new information technology.In case the invisible hand fails, the government regulation becomes particularly necessary. Through "Direct government intervention" and "policy guidance", information disclosure could ease Information asymmetry and improve market efficiency. Learning from the airplane ticket agency industry, analyzing the problems of Customs agent business, and discussing the corresponding countermeasures are valuable bin solving practical problems and developing theories in the new information age.