Which of the following is NOT an example of a credible third-party verifier providing buyers information that could solve an adverse selection problem due to seller's having private information?
A)Brianna relies on washing machine ratings in a well-regarded consumer magazine that tests and rates products.
B)Mia insists on seeing at least three projects of a given tile layer's work along with getting references from former customers before she will consider hiring him for a bathroom renovation.
C)Martin's car repair company guarantees repair work for 60 days after a repair.
D)Pierre pays a certified home inspector to examine a home he is considering for purchase.

Question

Quizplus · Accepted Answer

Martin's car repair company guaranteeing repair work for 60 days is not an example of a third-party verifier providing buyers with information that could solve an adverse selection problem. It's just an example of a warranty or guarantee provided by a seller to induce buyers to purchase their product. The other options are all examples of third-party verifiers providing buyers with information that can help solve adverse selection problems.

Which of the Following Is NOT an Example of a Credible