The Market for "Lemons": Quality Uncertainty and the Market Mechanism
George A. Akerlof
The Quarterly Journal of Economics, Vol. 84, No. 3. (Aug., 1970), pp. 488-500.
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Tue Aug 21 08:30:15 2007
THE MARKET FOR "LEMONS":
QUALITY UNCERTAINTY AND THE
MARKET MECHANISM '
I. Introduction, 4 8 8 . ~ 1 1 .The model with automobiles as an example,
489.-111. Examples and applications, 492.-IV. Counteracting institutions,
499. -V. Conclusion, 500.
This paper relates quality and uncertainty. The existence of
goods of many grades poses interesting and important problems for
the theory of markets. On the one hand, the interacti