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According to the Costly-To-Fake Principle

Question 113

Multiple Choice

According to the costly-to-fake principle


A) truth-telling is not a dominant strategy.
B) for a seller to have credibility,the seller must charge more than his or her reservation price.
C) for a buyer to have credibility,he must offer a price that is difficult to fake.
D) for information to be seen as credible,it must be less costly to provide the information if it is true.

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