Problem of adverse selection under two-sided uncertainty

Based on the classical adverse selection model and the improved model, especially on the model of principal with private information, a kind of adverse selection model under two-sided uncertainty is proposed and constructed. By analyzing the model and comparing its optimal contract with that which is of complete information and symmetric information under uncertainty, it is concluded that uncertainty and asymmetric information may both make efficiency or output level be distorted and the two kinds of distortions may mix together and influence each other.