When you’re looking for a good university to study at, you’ll read public press rankings that list best private and public schools. When you’re looking for a good bank to keep your money in, you’ll read rankings in the specialised press. How do you look for a good dealer of second-hand cars, though?
“Modern car sale ads must be transparent and must not lie. This is how they should stand out from hundreds or even thousands of similar ads. Buyers can’t waste time reading almost identical descriptions; that’ll make them lose their motivation to search altogether.”
“Information asymmetry is a condition under which one business party has a significant advantage over the other one they are dealing with, i.e. they possess more information regarding the subject of the transaction and can use it to their benefit at the expense of the other party.”