ABSTRACT
This chapter represents an attempt to examine the advertising message in the context of information asymmetry (IA). It offers an interpretation, or reading, of the various elements of this process in terms of the concept of IA as it has been elaborated in economic theory. The chapter emphasizes those aspects which can – and definitely do – articulate the problem of IA in online advertising and in firms’ communication with the market. In economic theory, IA addresses the following main issues: agency theory; moral hazard; adverse selection; signalling; and screening. The theory of agency can, where it concerns IA, describe relationships between firms and advertising agencies in a marketing communication system. Moral hazard is an important platform for analysing advertising strategies. Marketing communication, including online advertising, is particularly well suited for the exploration of IA.
