Analysis on Information Asymmetry of Jewelry Market and Countermeasure

Jewelry market is a market of extreme asymmetric information. The amplitude of information asymmetry increases fluctuantly. The market mechanism is sensitive to the asymmetric information. The information asymmetry may result in the adverse selection and the increase in the cost of consumer search, which would restrain the consumption demand for jewelry, and finally induce the ineffectiveness of market regulation. It can be concluded that the effect of information asymmetry upon the development of jewelry market can be relieved by reinforcing the signaling and the market regulation, so as to increase the market efficiency.