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Author Question: Signals may prevent adverse selection if A) sending a false signal is cheap for the agent. B) ... (Read 127 times)

misspop

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Signals may prevent adverse selection if
 
  A) sending a false signal is cheap for the agent.
  B) sending a false signal is costly for the agent.
  C) agents as rational.
  D) signals are as good as cheap talk.

Question 2

Why would a firm rather a company like J.D. Power (which provides product satisfaction reviews) review its product than doing it within the firm?
 
  A) J.D. Power provides less credibility.
  B) J.D. Power provides greater credibility.
  C) J.D. Power is more honest than the average firm.
  D) J.D. Power has a government monopoly in providing product satisfaction reviews.


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wergv

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misspop

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Reply 2 on: Jul 1, 2018
Wow, this really help


Viet Thy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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