201 DM 5 Information Asymmetry--Key

201 DM 5 Information Asymmetry--Key - 201 Information...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
201 Information Asymmetry 1. Champaign Park District includes three pools that are open to the public during the summer months. Families who live in the community can purchase admission tickets each time they go or they can pay a one-time summer-long fee. The Champaign Park District offer is an example of a. screening to reduce adverse selection b. self-selecting to reduce adverse c. screening to reduce moral hazard d. self-selecting to reduce moral hazard e. none of the above 2. A company advertises that its product comes with a 2-year extended parts and service warranty. Industry standard is a 1-year warranty. The company’s marketing policy is an example of a. signaling to reduce adverse selection b. signaling to reduce monitoring c. bonding to reduce adverse selection d. bonding to reduce monitoring e. none of the above Use the information below to answer the following 3 questions. 3. Great Stuff Corporation advertises that its product comes with a 2-year extended parts and service warranty. Industry standard is a 1-year warranty.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

201 DM 5 Information Asymmetry--Key - 201 Information...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online