A signal:
A) is an offer that conveys negative information about the product.
B) is an agent trying to exploit an information advantage in a dishonest way.
C) occurs when one party to a transaction has more information than the other party.
D) is an expensive action that is taken to reveal information.

Question

Quizplus · Accepted Answer

A signal is an action taken by an informed party to reveal information to an uninformed party, often involving a cost to ensure credibility.

A Signal