Sign In
Not register? Register Now!
Essay Available:
Pages:
2 pages/≈550 words
Sources:
1 Source
Style:
APA
Subject:
Literature & Language
Type:
Other (Not Listed)
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 7.2
Topic:

The Market for “Lemons”: Quality Uncertainty and the Market Mechanism

Other (Not Listed) Instructions:

Assignment: In approximately 500 words, summarize the paper, The Market for “Lemons”: Quality Uncertainty and the Market Mechanism by George A. Akerlof. Be sure to summarize: o What asymmetrical information means. o Why asymmetrical information can destroy a market. o How adverse selection in insurance is the result of asymmetric information. o What public and private institutions might exist to deal with asymmetric information. To Submit: Write your summary in a Word document. Save that document to your own files. Go to the “Assignments Tab” for our course in Moodle. Click “Submission for Akerlof Paper” to upload your work. Grading: • A+ Shows deeper understanding. Paper will be clear, concise and correct. • A- The paper is technically correct, but quotes heavily from the authors. • B+ The paper is unclear and does not show a full understanding of the reading • B- The paper is unclear and has errors in some places. • C+ The paper is unclear, has errors, is too short to fully describe the reading. • C- The paper is unclear and has errors. There is little correct analysis of the reading. • D The paper shows little effort was given to the assignment. It is wrong and unclear in many places. Tips for reading academic papers: 1. Read the abstract fist. The abstract is a summary paragraph at the beginning of the article. 2. Read the introduction. 3. Read the conclusion. 4. Read the first sentence of each paragraph. 5. Read the entire paper. Citation: Akerlof, George A. (1970). The Market for “Lemons”: Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics, 84(3), 488-500.

Other (Not Listed) Sample Content Preview:

Reading Summary - The market for “lemons”: Quality uncertainty and the market mechanism
Your Name
Subject and Section
Professor’s Name
February 8, 2023
In the paper "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," George Akerlof discusses the concept of asymmetrical information and its impact on market outcomes. Asymmetrical information refers to a situation where one party in a transaction has more or better information about a product or service than the other party.
Akerlof argues that asymmetrical information can negatively affect market outcomes and even lead to the breakdown of the market mechanism. This is because buyers cannot accurately assess a product or service quality, leading to a situation where lower quality items (referred to as "lemons") are overpriced relative to their actual value. In turn, this discourages the entry of higher-quality products into the market, leading to a decline in overall market quality and efficiency.
One example of this asymmetrical information is in the case of niche-priced items wherein one party would know more about the commodity's actual value than the other. According to the author, this imbalance in knowledge is one of the main reasons market efficiency diwndles. Another typical example of this is in the case of the housing market, wherein the seller usually has more information about the house than the buyer, thereby increasing the risks of the latter buying a sub-standard property.
Akerlof also discusses how asymmetrical information affects the insurance market through adv...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

You Might Also Like Other Topics Related to george washington:

HIRE A WRITER FROM $11.95 / PAGE
ORDER WITH 15% DISCOUNT!
Order Now