Market signaling
A)is a way of conveying information to other parties in a transaction where asymmetric information exists.
B)represents a dominant strategy in a multi-player game.
C)results in an optimum solution to a beach kiosk scenario.
D)None of the above

Question

Quizplus · Accepted Answer

Market signaling is the process of conveying information between parties in a transaction where one party has more information than the other (asymmetric information). It allows the party with less information to make better decisions, and can lead to more efficient outcomes in the market. Choices B and C are not accurate descriptions of market signaling.

Market Signaling