Final answer:
Buyers show their seriousness by providing proof of funds, while sellers can offer guarantees, warranties, or occupational licenses to reassure buyers or employers about the quality of goods or competency of their labor.
Step-by-step explanation:
Buyers often provide a seller with a proof of funds as an indication that they are serious and intend to go through with the purchase. This can take the form of a bank statement or a letter from a financial institution confirming the buyer's ability to finance the purchase. To reduce the risk associated with imperfect information, sellers can use various mechanisms to reassure potential buyers or employers. For example, a seller of goods, like used cars, could provide guarantees, warranties, and service contracts. A seller of labor could provide their occupational licenses and certifications. These measures help to build a reputation of trustworthiness and assure the quality of the product or competency of the labor being offered.