Common strategies used to address the problem of adverse selection include screening of buyers, signaling by sellers, and _____.
A)actuarial delimitation
B)using third party verifiers
C)physical localization
D)moral hazard planning

Question

Quizplus · Accepted Answer

Using third party verifiers, such as credit rating agencies or independent auditors, can provide unbiased information about buyer quality and can help alleviate concerns about adverse selection.

Common Strategies Used to Address the Problem of Adverse Selection