Information Asymmetry - it's about you and me

In retrospect, what really triggered me in the modules on Performance management was the concept of information asymmetry. In economics and contract theory, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other.
This creates an imbalance of power in transactions which can sometimes cause the transactions to go awry. Most commonly, information asymmetries are studied in the context of principal-agent problems.
In 2001, the Nobel Prize in Economics was awarded to George Akerlof, Michael Spence, and Joseph E. Stiglitz "for their analyses of markets with asymmetric information.

This made me wonder how Enterprise 2.0 could improve corporate performance in the long run. Building a Strategy-focused organization with strategy maps & BSCs was one of the topics of our last course so I started on my paper (actually it is an exam) to find out how information asymmetry reduces throughput in the organizations.  This is the starting point for my thesis that Enterprise 2.0 can drastically improve corporate performance - through the dynamic of social software - because it centers on knowledge as the most sustainable component in value creation.

For those interested in the matter, you can download my paper here - for free - with thanks to... social software of course.
Happy reading

PS to DC Comics - Hope you managed to introduce some right-brain thinking in your paper - when the product is stuck, the creative keep going (LOL)

Enterprise 2.0: reducing information asymmetry in 21st century organizations.