Asymmetric information in agriculture supply chain management: A literature review

This development enables consumers to continue to afford sustainable food in the future. Due to the complexity and non-transparency of value chains (especially in the organic food market) as well as the insufficient labelling of organic food, there is a lack of information in the organic food market. This often results in market failure. The aim of this research is to understand the problems caused by asymmetric information in the food supply chain and to present the principal-agent theory to detect and describe asymmetric information and as an economic model for understanding asymmetric information in the food supply chain.