In this lecture we looked at the Market for Lemons, based on Akerlof's 1970 paper, which you can get here. The basic role of information in market failure and in particular with regard to uncertainty of quality made a bit of an impact. I heard some awful chat up lines, and we made a strategy for date-quality success. Click here for the lecture notes as a handout, click below for the podcast of the lecture.

(more…)