An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A) proofing.
B) building a reputation.
C) disclosure laws.
D) mandating that information be shared.

Question

Quizplus · Accepted Answer

Building a good reputation can help to solve the problems caused by information asymmetry. A party who has a history of trustworthy dealings and a good reputation is more likely to be believed and trusted by the other party, even when there is incomplete information or uncertainty in the transaction. This can help to mitigate the risks and costs associated with information asymmetry.

An Approach That Can Be Taken by Someone Directly Involved