Application of Asymmetric Information Theory to Construction Project Risk Management

Asymmetric information theory is used widely in all kinds of domains and has become the core of information economics which has aroused widespread concern in academic fields. In recent years, the application of asymmetric information theory to construction project management has been explored. Asymmetric information theory is helpful to solve asymmetric information problem in construction project and prevent construction project risk. The major objective is to explore risk prevention mechanism and measures in construction project based on asymmetric information theory. The relationship asymmetric information and construction project risk will be explored. The research indicates that asymmetric information is the essential cause of brings construction project risk Some measures of resolving information asymmetries in the construction project risk management are proposed.