Adverse Selection in a Strategic Alliance Is Likely Only When

Adverse selection in a strategic alliance is likely only when

A) it is difficult or costly to observe the resources or capabilities that a partner brings to an alliance.
B) a potential partner can easily see the resources and capabilities that a firm is bringing to an alliance.
C) it is difficult or costly to know how competitors will react to the strategic alliance.
D) there are significant transaction-specific assets devoted to the alliance.