When buying a used car from a dealer,showing up in cheap clothing and ungroomed is an example of:
A) screening.
B) signaling.
C) statistical discrimination.
D) building a reputation.

Question

Quizplus · Accepted Answer

The action of showing up in cheap clothing and ungroomed is an example of signaling. Signaling refers to actions taken to convey information to others, usually in a strategic context. In this case, the buyer is signaling that they may not have a lot of money to spend, or may not be aware of the value of the car, in order to negotiate a better deal.

When Buying a Used Car from a Dealer,showing Up in Cheap