Solution proposal for the problem of asymmetric information: The Ethical person

Asymmetric information refers to information inequality between two parties and asymmetric information problem indicates that various negative outcomes occur, since one party has more information compared to the other. In different areas of life, information inequality among the individuals that result from the opportunities to access information and other factors can lead to harm on different scales. In order to prevent information inequality, either these inequalities must be eliminated, or the negative effects arising from the inequality must be mitigated. The actions and choices of a person throughout their life are the reflection of their moral principles and value system. In the case of asymmetric information, the situation where one party gains an unfair advantage over the other due to more information is closely related to the behaviour of the party using that information. Therefore, the aim of this study is to reveal the clear connection between the problem of asymmetric information and ethics. Homo economicus represents a typology of humans who only consider their own interests, and therefore, it can help reveal the fundamental causes of the asymmetric information problem. When an individual acts solely in their own interest, they may not hesitate to deceive the other party or intentionally withhold information. However, an ethical approach requires that an individual should not harm others for their own benefit and, if necessary, makes sacrifices for the sake of others' interests. Rather than adopting an approach that focuses only on one's own interests, individuals can reduce asymmetric information problems by leading a life shaped by moral principles such as empathy, keeping promises, avoiding extremes, being fair, telling the truth, acting with integrity, being charitable, and working hard. In this context, it has been demonstrated through concrete examples that while homo economicus can trigger the problem of asymmetric information, this issue can be prevented by acting in accordance with the established moral principles. In a society where immoral behaviours are not met with consequences and moral behaviours are not rewarded, it is valuable for an individual to display a moral attitude on their own, yet it may not be sufficient. In this context, it is important to establish a system in which individuals are not harmed for their moral actions, but instead are praised and encouraged. Such a system can reinforce moral behaviours and contribute to the widespread adoption of good morals in society. Otherwise, the spread of immoral behaviours could lead even individuals with moral values to gradually engage in similar immoral actions. This situation can deepen various other social and economic issues, in addition to the problem of asymmetric information. Therefore, individuals should be guided towards moral values through education, legal regulations, monitoring mechanisms, and systems of rewards and punishments, in order to build a society with good morals. Additionally, the ethical scoring system can be an effective tool for many issues, particularly in guiding businesses, with a high potential to cause asymmetric information problems driven by profit motives, towards a more ethical approach. Such practices can provide extensive benefits at both social and economic levels. The study was conducted using a qualitative research method, drawing on various sources such as sacred texts, religious writings, literature on the subject (books, articles, journals), internet resources, laws, and reports.