Question: (b) Now let us modify the above game slightly. Suppose B can discover the item's quality with a probability 70% before she makes her purchase

(b) Now let us modify the above game slightly. Suppose B

(b) Now let us modify the above game slightly. Suppose B can discover the item's quality with a probability 70% before she makes her purchase decision (or 70% of the buyers in the market know the real quality of the item). Can price signal quality now (when the buyer does not know the quality)

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