Final answer:
Buyers and sellers use mechanisms such as reputation, guarantees, and licenses to reduce the risk of imperfect information.
Step-by-step explanation:
Buyers and sellers in the goods market use various mechanisms to reduce the risk of imperfect information when buying and selling goods. One example of a mechanism is reputation, which reassures possible buyers about the quality of a product. Another example is guarantees, warranties, and service contracts, which provide assurance of product quality. In the labor market, occupational licenses and certifications are used to assure competency, while the financial capital market uses cosigners and collateral as insurance against unforeseen events.