Market signaling does not produce
A) Pareto-optimal results
B) separating equilibria
C) market solutions to adverse selection

Question

Quizplus · Accepted Answer

Market signaling can lead to separating equilibria and market solutions to adverse selection by allowing parties with more information to reveal it credibly. However, it does not guarantee Pareto-optimal results, where no individual can be made better off without making someone else worse off, due to potential inefficiencies and costs associated with signaling.

Market Signaling Does Not Produce