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Briefly explain what is “signaling” (from an economist’s view) and how it may reduce adverse selection.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section30.5: Asymmetric Information

Problem 2ST

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