Activity 6

Q 1.  Describe an adverse selection problem a company is facing. What is the source of the asymmetric information? Who is the less informed party? What transactions are not being consummated as a result of the information? Could you (or do you) use signaling or screening to consummate these transactions? Offer your company some sound advice, complete with computations of the attendant profit consequences. 

Q 2. Identify two companies in the same industry whose businesses you understand and can find information about online. Alternatively, choose two local companies you can visit. Compare and contrast the marketing strategies of the two companies. What is each trying to accomplish with their specific strategy?   

  The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 - 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to competitive strategy.