Information __________________ exists when one party in a transaction has more information that is important for the transaction than the other party.

The concept of information asymmetry most accurately identifies a situation where one party involved in a transaction possesses more or superior information than the other party. This imbalance in knowledge can lead to various issues such as unfair advantages or exploitation, as the informed party can use their knowledge to make decisions that benefit them more than the less informed party.

In economic theory and business contexts, information asymmetry can significantly impact negotiations, market transactions, and overall fairness. It is particularly relevant in markets where quality of information determines the success of participants, such as in insurance, real estate, and finance.

Transparency refers to the clarity and openness with which a transaction's terms are communicated, while symmetry would imply equal levels of information between parties, which contradicts the premise of information asymmetry. Imbalance is a broader term that could refer to various disparities that are not specifically tied to information, thereby making it less precise in this context. Therefore, information asymmetry is the term that most accurately captures the situation described in the question.