Tools to Avoid the Problem of Adverse Selection

Signaling: The problem of adverse selection can be avoided if the owners of good quality products can provide a signal about the quality of their products to those of want to purchase them. For example: in the used car market, if the owner provides a warranty of its car, then it would provide a signal to the buyers that it is a good car because the owners of bad cars generally cannot afford providing warranty.
Intermediation: The problem of adverse selection can be avoided if there is some party who could intermediate between the buyers and the sellers. For example: in the used car market, if there is some intermediary who buys cars from the sellers at a lower price, tests and gathers information about the car and then sell the cars to the buyers with full information but with a little higher price, then the buyers will be able to buy the type of car they want and hence, the problem of adverse selection can be solved.