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Public Information Asymmetry and Its Impact on Urban Governance Efficiency

Author

Listed:
  • Dorota Sikora-Fernandez
  • Danuta Stawasz

Abstract

Purpose: This article has a theoretical character and its aim is to analyze the importance of public information in urban management, with a particular focus on the phenomenon of information asymmetry and its impact on the efficiency of decision-making processes. Design/methodology/approach: Based on a review of national and international literature, the authors systematize knowledge about the role of information as a key resource in urban governance. The causes, mechanisms and consequences of unequal access to public data are presented, as well as theoretical proposals for strategies to reduce this phenomenon. Findings: Public information, being one of the basic organizational resources, enables rational decision-making and supports the transparency of city administration activities. The article identifies the main sources of information asymmetry, such as technological barriers, insufficient digital infrastructure, lack of transparency in the administration's operations and limited digital competences. An additional factor is the deliberate concealment of data by authorities and the low level of public interest in public affairs. The consequences of information asymmetry are significant and include inefficient use of resources, decreased public trust and reduced civic participation. Unequal access to information also leads to difficulties in coordinating activities between stakeholders, which hinders the implementation of sustainable urban development strategies. The authors highlight the key role of digital transformation in reducing information asymmetry. The smart city concept presented in the article implies the use of digital technologies to improve accessibility, integration and transparency of public data. Synchronization of information management systems can support efficient decision-making processes and build trust between the administration and stakeholders. Practical implications: The article proposes concrete actions, including the development of interoperable data systems, enhancing digital competences of officials and promoting public-private partnerships. The authors point out that providing universal access to reliable public information is a prerequisite for democratic governance and sustainable urban development. Originality/value: The article makes a theoretical contribution by demonstrating the importance of public information in shaping effective and inclusive models of urban governance, while pointing to courses of action to reduce information asymmetry.

Suggested Citation

  • Dorota Sikora-Fernandez & Danuta Stawasz, 2024. "Public Information Asymmetry and Its Impact on Urban Governance Efficiency," European Research Studies Journal, European Research Studies Journal, vol. 0(Special A), pages 403-415.
  • Handle: RePEc:ers:journl:v:xxvii:y:2024:i:speciala:p:403-415
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    References listed on IDEAS

    as
    1. Frédéric Marty & Thierry Warin, 2020. "Digital Platforms' Information Concentration: From Keystone Players to Gatekeepers," Working Papers hal-03086987, HAL.
    2. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Data; information asymmetry; digital transformation; local development; digital competences; urban efficiency; data-driven governance.;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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