Common strategies to deal with the problem of adverse selection include screening (which involves using observable information to make inferences about private information), signaling (by engaging in actions that reveal one's private information), and establishing a good reputation.False

Question

Quizplus · Accepted Answer

The given statement is true. Screening, signaling, and establishing a good reputation are indeed common strategies to deal with adverse selection.

Common Strategies to Deal with the Problem of Adverse Selection