How can one solve the problems caused by information asymmetry?
A)Screening
B)Signaling
C)Building a reputation
D)All of these are solutions to problems caused by information asymmetry.

Question

Quizplus · Accepted Answer

Screening, signaling, and building a reputation are all strategies to mitigate the issues caused by information asymmetry. Screening is used by the less informed party to filter or identify desirable counterparts. Signaling is used by the more informed party to indicate their quality or reliability. Building a reputation over time also helps reduce information asymmetry by providing a track record of behavior or quality.

How Can One Solve the Problems Caused by Information Asymmetry