Which of the following reduces the effects of asymmetric information?
A)Repeat purchases
B)Warranties
C)Building a reputation
D)All of the above.

Question

Quizplus · Accepted Answer

All of the above reduce the effects of asymmetric information. Repeat purchases allow consumers to gain information about a product's quality and trustworthiness over time. Warranties act as a signal of a product's quality and a commitment to customer satisfaction. Building a reputation establishes trust between the buyer and seller, as a seller with a positive reputation is more likely to provide accurate information about their products.

Which of the Following Reduces the Effects of Asymmetric Information