How do you know you are getting a true bargain when purchasing a used item? How do you know whether the person you are interviewing for the job is truly capable rather than a slacker? Liz Malm, Justina Adamanti, Yuqing Hu, and Krishanu Ray discuss adverse selection and quality uncertainty in George Akerlof’s classic theory on The Market for Lemons.
The Market for Lemons: Quality Uncertainty and the Market Mechanism
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