In which of the following are the parties likely to avail themselves of norms for the transaction?
a. When transactions are repeated
b. When the stakes for both parties are high
c. When court costs are low
d. When information costs are high
A
You might also like to view...
An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they require a co-payment
In economics, we assume a rational person will choose to do an activity:
A. if the opportunity costs outweigh the benefits of doing so. B. if the sunk costs outweigh the benefits of doing so. C. if the sunk and opportunity costs combined outweigh the benefits of doing so. D. if the opportunity costs do not outweigh the benefits of doing so.