See Also: Lemons problem(money)
Lemons problem(finance)
Preserved lemons(recipes)
Chicken tagine with preserved lemons and olives(recipes)
Tagine of chicken with artichoke, preserved lemons and olives(recipes)
Tight money or dear money(finance)
problem(dictionary)
Problem(medicine)
problem(dictionary)
Underinvestment problem(money)

Lemons problem (money)


Definition: [crh] Named after 2001 Nobel Laureate George Akerlof's 1970 paper "The Market for Lemons". His original example had to do with used cars. Why does the seller want to get rid of the car? It Definition: might be a lemon. The buyer and seller have asymmetric information. Hence, the buyer will demand a deep discount on the car because of the possibiDefinition: lity it is a lemon.