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The Market for Lemons - Wikipedia

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"The Market for 'Lemons': Quality Uncertainty and the Market Mechanism"[1] is a widely cited seminal paper in the field of economics which explores the concept of asymmetric information in markets. The paper was written in 1970 by George Akerlof and published in the Quarterly Journal of Economics. The paper's theory has since been applied to many types of markets. Akerlof examines how the quality of goods traded in a market can degrade in the presence of information asymmetry between buyers and sellers, which ultimately leaves goods that are found to be defective after purchase in the market, noted by the term 'lemon' in the title of the paper. In American slang, a lemon is a car that is found to be defective after it has been bought. Akerlof's theory of the "Market for Lemons" paper applies to markets with information asymmetry, focusing on the used car market. Information asymmetry within the market relates to the seller having more information about the quality of the car as opposed

The Market for Lemons - Wikipedia Jump to content From Wikipedia, the free encyclopedia 1970 economics paper by George Akerlof " The Market for 'Lemons': Quality Uncertainty and the Market Mechanism " [ 1 ] is a widely cited seminal paper in the field of economics which explores the concept of asymmetric information in markets. The paper was written in 1970 by George Akerlof and published in the Quarterly Journal of Economics . The paper's theory has since been applied to many types of markets. Akerlof's paper uses the market for used cars as an example of the problem of quality uncert

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