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 “Soft Selling” and Adverse Selection 
Soft selling occurs when a buyer is skeptical of the quality or usefulness of a product or service. 
For ex, suppose you’re trying to sell a company a new accounting system that will reduce 
costs by 10%. Instead of asking for a price, you offer to give them the product in exchange for
50% of their cost savings.

Describe the information asymmetry, the adverse selection problem, 
and why soft selling is a successful signal. 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M997459

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