Which of the following was NOT mentioned by Akerlof to mitigate the lemons problem?

Question

Quizplus · Accepted Answer

Akerlof's discussion on mitigating the lemons problem in the market for used cars (and similar markets) focused on mechanisms that help buyers distinguish between high-quality and low-quality goods. These include certification (where an independent third party verifies the quality of the product), using costly signals (where sellers engage in activities that are only cost-effective if the product is of high quality), establishing a reputation (where sellers build trust over time through consistent quality), and contract enforcement (where legal mechanisms ensure adherence to quality standards). Private negotiation was not specifically mentioned as a solution to the lemons problem in Akerlof's analysis.

Which of the Following Was NOT Mentioned by Akerlof to Mitigate