How does information asymmetry undermine our market economy?

Need a little help with some Econ. Couldn't find anything and the book I'm reading didn't explain it well. Help Please.|||Wikipedia is your friend:


http://en.wikipedia.org/wiki/Information鈥?/a>





For one specific example, consider insider trading, where the insider can take advantage of knowledge the general public and other investors don't have.





For a few other examples (out of countless):


http://worldisgreen.com/2008/11/28/the-i鈥?/a>


http://sloanreview.mit.edu/the-magazine/鈥?/a>


http://www.allacademic.com/meta/p_mla_ap鈥?/a>


http://blog.wesabe.com/2006/09/28/freako鈥?/a>


http://freakonomics.blogs.nytimes.com/20鈥?/a>