Both signaling and screening:
A)reduce efficiency in the market.
B)are effective ways to increase information available to both parties.
C)benefit sellers but harm buyers.
D)benefit buyers but harm sellers.

Question

Quizplus · Accepted Answer

Both signaling and screening mechanisms are designed to increase the amount of information available to both parties in a transaction, thereby potentially reducing information asymmetry and making markets more efficient.

Both Signaling and Screening