In an economic model, reputation:
A)is a mechanism used to guarantee quality.
B)is based on goodwill.
C)is not related to asymmetric information.
D)does not rely on past experiences.

Question

Quizplus · Accepted Answer

Reputation is often used in economic models as a way to ensure quality, and it can act as a mechanism to overcome information asymmetries between buyers and sellers. It is typically based on past performance and experiences, rather than simply goodwill.

In an Economic Model, Reputation