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=== Warranties === By offering a warranty for the product the seller intends to sell, they are able to indirectly communicate private information about the product to the buyer. Warranties assist in conveying information about the seller's confidence in the product for its quality, by acting as a guarantee on the product.<ref>{{cite journal |last1=Hollis |first1=Aidan |title=Extended Warranties, Adverse Selection, and Aftermarkets |journal=The Journal of Risk and Insurance |date=1999 |volume=66 |issue=3 |pages=321β343 |doi=10.2307/253551 |jstor=253551 |citeseerx=10.1.1.202.1342 }}</ref> A common example is in the used car market, where apart from warranties offered by the seller itself, the buyer may purchase additional warranties in the form of insurance from third-party companies.
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