id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
en-wikipedia-org-7130		The Market for Lemons - Wikipedia			.html	text/html	3002	373	73	"The Market for Lemons: Quality Uncertainty and the Market Mechanism" is a well-known[1][2] 1970 paper by economist George Akerlof which examines how the quality of goods traded in a market can degrade in the presence of information asymmetry between buyers and sellers, leaving only "lemons" behind. Suppose buyers cannot distinguish between a high-quality car (a "peach") and a "lemon". Thus the uninformed buyer's price creates an adverse selection problem that drives the high-quality cars from the market. Akerlof's paper shows how prices can determine the quality of goods traded on the market. Akerlof's paper uses the market for used cars as an example of the problem of quality uncertainty. Akerlof's paper uses the market for used cars as an example of the problem of quality uncertainty. The result is that a market in which there is asymmetric information with respect to quality shows characteristics similar to those described by Gresham's Law: the bad drives out the good.	./cache/en-wikipedia-org-7130.html	./txt/en-wikipedia-org-7130.txt