Signaling and Screening °5 ignaling An action taken by an informed party to reveal private information to an unformed arty Examples: advertising, diploma e Screening An action taken by an uninformed party to induce an informed party to reveal information Examples: used car, car insuranceSignaling and Screening • Signaling: – An action taken by an informed party to reveal private information to an unformed party. • Examples: advertising, diploma • Screening: – An action taken by an uninformed party to induce an informed party to reveal information. • Examples: used car, car insurance