Carfax is a web-based service that supplies vehicle history reports to…

Carfax is a web-based service that supplies vehicle history reports to individuals on used cars: ownership history, vehicle mileage, accident reports, and other information. The existence of Carfax as a third-party verifier in the used car industry can result in which of the following?
Carfax could lead to
an efficient outcome in the used car market.
a reduction in the variance in the quality of cars in the used car market.
an increase in the number of cars available in the used car market.
Decisions Involving Private Information – -End of Chapter Problem Carfax is a web-based service that supplies vehicle history reports to individuals on used cars: ownership history, vehicle mileage, accident reports, and other information. The existence of Carfax as a third-party verifier in the used car industry can result in which of the following? Carfax could lead to an efficient outcome in the used car market. a reduction in the variance in the quality of cars in the used car market. an increase in the number of cars available in the used car market.