Screening occurs when
A)an informed party acts to reveal his private information.
B)an informed party acts to conceal his private information.
C)an uninformed party acts to induce the informed party to reveal private information.
D)an uninformed party acts on its limited information.

Question

Quizplus · Accepted Answer

Screening occurs when an uninformed party acts to induce the informed party to reveal private information. In other words, the uninformed party is trying to screen or gather more information about the informed party by encouraging them to disclose private information.

Screening Occurs When