Market Failure: Asymmetric Information (Akerlof's Lemons)

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Market Failure: Asymmetric Information (Akerlof's Lemons)

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Mark Seccombe

8 жыл бұрын

Пікірлер: 19

@SupaGao 7 жыл бұрын

you are amazing as describing this concept thank you!

@prileylinggi2383 2 жыл бұрын

Thanks it's beautifully explained

@ignaciolopezmenendez5235 2 жыл бұрын

greaaat video about an amazing topic!

@mahnoorimtiaz3538 3 жыл бұрын

Very nicely explained! 🌸

@shuhanyang4093 2 жыл бұрын

Thank you, this video is very helpful!

@hamzahannoun2307 2 жыл бұрын

amazing video

@missmaha111 6 жыл бұрын

very useful video thank you so much

@krystleceasar3995 8 ай бұрын

Great explanation

@ekananda9591 3 жыл бұрын

This hypothesis fail to explain buyers used to buy used cars and thus also have information advantage. The car buyers who know nothing about car usually settle to buy new car

@andile5945 2 жыл бұрын

Correct! Or they lease. This in effect would topple the used car market prices or push dealers to compete for reputation.

@mayanksingh0044 5 ай бұрын

Thx

@SergioBravo97 6 жыл бұрын

Muchas gracias!

@TheExceptionalState 4 жыл бұрын

Thank you for the clear explanation. However, it is Akerlof that is the biggest lemon, because he should have come up with a more realistic scenario in which information asymmetry might drive down prices. Can buyers really be expected to be as simplistic in their thinking as is assumed here. I am not saying it won't happen in markets, just that Akerlof's lemons is lemon. It makes you wonder if he ever bought a car in his life.

@MeLawenity 4 жыл бұрын

en.wikipedia.org/wiki/Economic_model Simplification is particularly important for economics given the enormous complexity of economic processes....Economists therefore must make a reasoned choice of which variables and which relationships between these variables are relevant and which ways of analyzing and presenting this information are useful.

@Robert399 4 жыл бұрын

I mean you could say the buyer receives a random signal about the value of the car and add a "buyer's knowledge" parameter which is the probability of it being correct but (for anything less than perfect knowledge) you would get the same results. It's just pointless maths with no additional insights - the mark of a bad economist.