Ratings and reviews of mechanics on the Internet:
A) make it easier to avoid shady mechanics, thus reducing moral hazard.
B) raise the cost to mechanics of exploiting their adverse selection advantage.
C) make it easier for mechanics to take advantage of their information advantage.
D) completely prevent all forms of information asymmetries.

Question

Quizplus · Accepted Answer

Ratings and reviews help consumers identify trustworthy mechanics, reducing the risk of moral hazard by discouraging dishonest behavior.

Ratings and Reviews of Mechanics on the Internet