Three American economics professors shared the 2001 Nobel economics prize on Wednesday for explaining why people distrust used car salesmen and governments doubt the accuracy of citizens’ income tax forms.

The Royal Swedish Academy of Sciences rewarded George Akerlof, Michael Spence and Joseph Stiglitz for their analyses of how markets function when some people know more than others — a concept called asymmetric information.

According to story filed by Reuters, the term means, for example, that the managers and board members of a corporation know more than shareholders about that corporation’s profitability, just as borrowers know more than lenders about their debt repayment prospects.

The trio’s contributions “form the core of modern information economics” and have led to practical applications in areas ranging from traditional agricultural markets to modern financial markets, the academy said in its citation.

What the winners’ work boiled down to, said Anders Borglin, economics professor at Lund University in southern Sweden, was the theory behind many people’s instinctive distrust of used car salesmen, who usually know more than buyers about the vehicles.

The theory offers support for improved disclosure between financial advisors and their clients.