Ebay is an online auction site where individual buyers and sellers receive feedback on their how well they conducted their transaction. This feedback is public available. What is the purpose of this feedback?
A) It is a signal that the buyer or seller is reliable.
B) To reduce credit risk of a faulty buyer
C) To reduce default risk of a faulty seller
D) It is a tool to prevent moral hazard.
Correct Answer:
Verified
Q211: Most college professors are granted tenure after
Q212: Consider a market for used cars. Suppose
Q213: When would a risk averse individual not
Q214: "People buy insurance do protect themselves from
Q215: How can we measure the cost of
Q217: What is private information and what problems
Q218: Pirates have been intensely attacking ships off
Q219: Explain the concept of adverse selection. Give
Q220: In an ad for insurance, the text
Q221: A risk averse person will always buy
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents