When shopping for a used car, Anoop is leaning towards buying a Toyota over a Ford, because he has read reports that Toyota is a more reliable car brand. Anoop's behavior is an example of:
A)screening.
B)statistical discrimination.
C)building a reputation.
D)signaling.

Question

Quizplus · Accepted Answer

Anoop is using general information about the reliability of car brands (in this case, Toyota over Ford) to make a decision. This is an example of statistical discrimination, where decisions are made based on statistical data or perceived characteristics of groups rather than on individual merits or information.

When Shopping for a Used Car, Anoop Is Leaning Towards