I want to point out some well known problem to study under the signaling approach:
“The Market for Lemons: Quality Uncertainty and the Market Mechanism” (Akerlof, 1970) is an article that studies the quality of goods traded in a market with presence of information asymmetries. It generally states that, for instance, the good quality cars would be driven out of the second-hand car market motivated by the adverse selection problem that consumers face. Hence, does the introduction of your second hand car to the used cars market could be interpreted as a signal of a bad quality goods seller? Or, what kind of implications does willingness of selling your second hand car can have?
Is it a good idea to search for cars in the second-hand car market?
I want to know your opinions about this…
Good luck with your exams!!