Information asymmetry and trust in cooperative interactions

Abstract

This paper results from a case study that shows the problem of information asymmetry in an agricultural marketing cooperative. After identifying aspects of the information asymmetry in the agent (managers) and principal (members) relationship, an attempt was made to understand the effects coming from transaction and trust relations from the members towards the cooperative business. The research is made by using interviews, document analysis, file records and non-participant observations. The Analysis of Content was undertaken based in the qualitative perspective, showing the significances of the information asymmetry and trust through the analysis of the perceptions and satisfactions of the investigated subjects referring to information management classified as internal and external information. The existence of high internal and external information asymmetries is verified among managers and members. Findings suggest that this asymmetry effects has a negative impact on members' trust in their transactions with the cooperative. The research explores new implications about agency theory analysis applied to cooperatives.

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