Describe How Reputation and Warranties Alleviate the Problem of Adverse

question 16

Essay

Describe how reputation and warranties alleviate the problem of adverse selection.

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Definitions:

Viral Marketing

A marketing strategy that relies on individuals to spread information about a product or service quickly, much like the spread of a virus.

Social Networking

Activities performed using social software tools (e.g., blogging) or social networking features (e.g., media sharing).

Social Computing

Refers to the use of computational devices to facilitate or enhance social interactions, involving the study and design of systems that support social behavior.

Customers

People or organizations that buy products or services from a company.