When a Transaction Takes Place Repeatedly, One Way to Avoid

question 145

Multiple Choice

When a transaction takes place repeatedly, one way to avoid information asymmetry is:

• A)building a reputation.
• B)screening.
• C)statistical discrimination.
• D)All of these are ways to avoid information asymmetry in repeated transactions.

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Definitions:

Reduce One's Own Distress

Engaging in behavior aimed at minimizing personal discomfort or distress.

Altruistic Helping

When a helper seeks to increase another’s welfare and expects nothing in return

Empathy

The ability to understand and share the feelings of another individual.

Reduce Others' Distress

The act of alleviating or minimizing emotional or psychological suffering in other individuals.