factual
Lemons Markets Break Down Conditionally
In Akerlof's model markets do not necessarily collapse; they break down only when the asymmetric information problem is large relative to the gains from trade, so legitimate reasons to sell (like moving) can sustain a market despite asymmetry.
factualpending
Speaker
Paul PfleidererEvidence Quote
“If the asymmetric problem is too large and the gains to otherwise trading and selling your car too small, then the market will break down.”
Created: 6/13/2026, 12:27:00 AM
My Notes
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