3 Market signaling(市场信息传递) Maybe the answer is guarantees and warranties. Guarantees and warranties effectively signal product quality because an extensive warranty is more costly for the producer of a low-quality item than for the producer of a high-quality item.The low-quality item is more likely to require servicing for free under the warranty. 3 Market signaling (市场信息传递） ◼ Maybe the answer is guarantees and warranties. Guarantees and warranties effectively signal product quality because an extensive warranty is more costly for the producer of a low-quality item than for the producer of a high-quality item. The low-quality item is more likely to require servicing for free under the warranty