The Models of Information Asymmetry in the Context of Digitization of Government

Abstract

Digital technologies in public administration sphere are intended to enhance accountability, efficiency and transparency, help to reduce costs and lead to better governance. One of the positive consequences that digitization of government was supposed to have is reduction of information asymmetry between citizens and government. The research question of this paper is whether models of information asymmetry in different levels of government digitization (such as e-government and digital government) are distinct. The authors have explored and analyzed the situation of information asymmetry in the government-citizen interaction. It was revealed that information asymmetry is mutual in these interactions; neither side has the information model of the counterparty that fully reflects reality. Implementation of information and communication technologies allows for the reduction of information asymmetry, providing new tools for receiving information. But if the reduction of information asymmetry is desirable in the case of information about government, it is more controversial with information asymmetry based on information about citizens. It is important to realize that full information symmetry in this case may not be desirable. The authors have concluded that the e-government stage of digitization mostly provides citizens with additional instruments for receiving information, aligning information asymmetry in their favor. Digital government provides these new tools for both sides of the interaction, but the direction of information asymmetry alignment creates advantages for government.