How Twitter Solves Voter and Other Types of Information Asymetry
In Decision Theory, Information Asymetry deals with situations where one or more parties has more or better information than the other. In the case of Voter decisions, Twitter, the fascinating microblogging platform, is a simple solution to a nasty problem of Information Asymetry.
Even more broadly, imagine if more Stock Traders were on Twitter: most likely, Stock Traders would have been sending Tweets about the massive sell-off in the market last week several minutes before CNN could publish the news — the difference in minutes or seconds can be huge. The problem of “Information Stickiness” or Information Asymetry is becoming less and less of a problem because of Twitter.
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Just found interesting post from @shmula about how Twitter and #votereport solves information asymmetry http://tinyurl.com/6mcpsa
[...] sta dando una cruciale e multiforme mano a ravvivare la democrazia, e c’è chi afferma che risolva finalmente l’asimmetria informativa per cui alcuni si trovano in posizioni meglio munite di altri al momento di votare o di prendere [...]
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Conversely, Twitter also increases information assymetry. Using the stock market as an example, information assymetry can be increased by having more outsiders twittering than insiders twittering (insiders being those in the know, while outsiders are those who think they are in the know).