Some countries only allow people who have been vaccinated against Covid-19 to eat in restaurants. Which concept of asymmetric information does this illustrate?
A) Screening.
B) Signaling.
C) Contingent contract.
D) All of the above.

Question

Quizplus · Accepted Answer

Screening is the process by which one party to a transaction attempts to gather information about the other party to reduce information asymmetry. In this case, requiring proof of vaccination is a form of screening to ensure that only vaccinated individuals, who are less likely to spread Covid-19, are allowed to dine in restaurants.

Some Countries Only Allow People Who Have Been Vaccinated Against