The phrase "scientia potentia est" (or "scientia est potentia" or also "scientia potestas est") is a Latin aphorismmeaning "knowledge is power."

Considering our discussion of principal-agent problems:

a.Present a counter-example to this statement where knowing more than your opponent (having private information) is not to your advantage, that is you would be better off if your opponent had the same information you had. Make sure to specify the content of the private information you refer to in your example.

b.Present an example in line with this statement where knowing more than your opponent (having private information) is to your advantage, that is you may be better off just because your opponent does not have the same information. Make sure to specify the content of the private information you refer to in your example.