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19-5 Soft Selling and Adverse Selection Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to

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19-5 "Soft Selling" and Adverse Selection Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose you're trying to sell a com- pany a new accounting system that will reduce costs by 10%. Instead of naming a price, you offer to give them the product in exchange for 50% of their cost savings. Describe the infor- mation asymmetry, the adverse selection prob- lem, and why soft selling is a successful signal

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