A Warranty Is Most Valuable as a Signaling Device When

question 81

Multiple Choice

A warranty is most valuable as a signaling device when:

• A) the buyer has much more information about the product than the seller does.
• B) the seller has much more information about the product than the buyer does.
• C) the buyer has much more information about his or her own preferences than the seller does.
• D) neither the buyer nor the seller has good information about the product.
• E) neither the buyer nor the seller has good information about consumer preferences.