Consider a market for used bicycles, with high and low quality. Sellers value high quality at $260 and low quality at $95. Buyers value high quality at $345 and low quality bicycles at $135. If the...

Extracted text: Consider a market for used bicycles, with high and low quality. Sellers value high quality at $260 and low quality at $95. Buyers value high quality at $345 and low quality bicycles at $135. If the buyer cannot observe type, but is willing to pay a price up to $292.5, this implies the buyer believes that fraction quality. are type high 0.82 0.75 0.70 0.66