This paper revisits Akerlofs (1970) classic adverse selection market and asks the
following question: do greater information asymmetries reduce the gains from trade?
Perhaps surprisingly, the answer is no. Better information on the selling side worsens
the buyers curse, thus lowering demand, but may shift supply as well. Whether trade
increases or decreases depends on the relative sizes of these effects. A characteization
is given. On the other hand, improving the buyers information i.e. making private
information public unambiguously improves trade so long as market demand is downward