A market solution to adverse selection is
A) market signaling
B) insurance deductibles
C) co-insurance

Question

Quizplus · Accepted Answer

Market signaling, such as a seller offering a warranty or a buyer conducting research on a product, can help mitigate the problem of adverse selection by providing information that reduces uncertainty and encourages trust between parties in a transaction. Insurance deductibles and co-insurance are ways to share risk and reduce moral hazard, but do not directly address the issue of adverse selection.

A Market Solution to Adverse Selection Is