According to the Costly-To-Fake Principle

question 64

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.