Suppose the seller of a used car provides unverifiable information about its quality to a prospective buyer.Unverifiability will reduce the cost of formulating a contract.

Question

Quizplus · Accepted Answer

Unverifiable information increases the difficulty and complexity of formulating a contract, potentially raising the costs due to the need for more thorough due diligence and possibly more detailed contractual terms to mitigate risks associated with the unverifiable information.

Suppose the Seller of a Used Car Provides Unverifiable Information