George Akerlof and the Lemon Problem

George Akerlof put math behind the concept of the  “lemon problem” in his classic 1970 article, “The Market for Lemons,” which used the example of a used car market to depict asymmetry of… Click To Tweet Akerlof (with Michael Spence and Joseph Stiglitz) received the 2001 Nobel Prize for their analyses of markets with asymmetric information. This YouTube video explains the lemon […]