Joint post by Willem H. Buiter and Anne C. Sibert. Virtually the same post appeared on September 2 on Martin Wolf’s Economists’ Forum. In his column ‘Central Banks should not rescue fools’, Martin ...

Describes market inefficiencies caused by asymmetric information. Buyers discount prices due to uncertainty about product quality. Can lead to market failure if only low-quality goods remain. The ...

"Lemon" products are items that perform poorly. Simply put, they're bad purchases. People buy lemons because they lack the correct information: that is, if they knew that a product was a lemon, they ...

Mota is a new company that wants to fix the famous “lemons” problem by restoring trust to the used car market. When sellers put up their cars, Mota asks them typical questions about the quality of ...

Highlights:,Asymmetric information leads to market inefficiencies.,Buyers discount prices due to uncertainty about quality.,Low-quality goods drive high-quality goods out of the market.,The "Lemons ...

This refers to a form of adverse selection wherein there is a degradation in the quality of products sold in the marketplace due to asymmetry in the amount of information available to buyers and ...

A “lemons problem” is what economists call situations where sellers have more information about the quality of what they're selling than buyers do. There’s a real-life example going on right now with ...