|Learning Objectives: Think critically about the role of asymmetric information on market performance|
- Further reading: Akerlof, George A. (1970). “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism“. Quarterly Journal of Economics 84(3):488–500 (£)
- If you are a bit daunted by an academic article, George Akerlof wrote a very interesting essay on how he came up with the ideas and the process of working on the topic. You can read it at the Nobel site.
- Further reading: “Secrets and agents“, The Economist, July 23rd 2016
Here’s a good video explaining the lemons problem:
|These resources form part of my Managerial Economics course map. You can watch the full YouTube playlist here. This page ties into Chapter 3 of ‘Markets for Managers’.|