Respuesta :
The correct answer is true. screening is a method of preventing unfavourable selection by the agent(s) with less information.
What is screening?
Asymmetric information instances for screening presume two economic agents who are attempting to conduct some sort of transaction.
Although it is not required, there frequently exists a long-term relationship between the two agents.
Fundamentally, the screening technique entails the trying to learn about private information that the other economic agent may be in possession of but that he or she is initially unaware of before the transaction takes place. The information asymmetry between the two agents is decreased by the
collection of such data, allowing the screening agent to participate in the transaction with greater knowledge.
As asymmetric information often results in inefficiency, screening improves information flow between agents.
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