Themarketoflemons

Páginas: 8 (1993 palabras) Publicado: 22 de noviembre de 2012
The Market for "Lemons": Quality Uncertainty and the Market Mechanism
George A. Akerlof
The Quarterly Journal of Economics, Vol. 84, No. 3. (Aug., 1970), pp. 488-500.
Stable URL:
http://links.jstor.org/sici?sici=0033-5533%28197008%2984%3A3%3C488%3ATMF%22QU%3E2.0.CO%3B2-6
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Mon Mar 3 14:37:00 2008

T H E MARKET FOR "LEMONS":
QUALITY UNCERTAINTY AND T H E
MARKET MECHANISM '

I. Introduction, 4 8 8 . ~ 1 1 . he model with automobiles as an example,
T
489. - 111. Examples and applications, 492. - IV. Counteracting institutions,
499. -V. Conclusion, 500.

T his paper relates quality and uncertainty. The existence of
goods of many grades posesinteresting and important problems for
the theory of markets. On the one hand, the interaction of quality
differences and uncertainty may explain important institutions of
the labor market. On the other hand, this paper presents a struggling attempt to give structure to the statement: "Business in underdeveloped countries is difficult"; in particular, a structure is given
for determining theeconomic costs of dishonesty. Additional applications of the theory include comments on the structure of money
markets, on the notion of "insurability," on the liquidity of dura b l e ~and on brand-name goods.
,
There are many markets in which buyers use some market
statistic to judge the quality of prospective purchases. I n this case
there is incentive for sellers to market poor qualitymerchandise,
since the returns for good quality accrue mainly to t he entire group
whose statistic is affected rather than to the individual seller. As
a result there tends to be a reduction in the average quality of goods
and also in the size of the market. It should also be perceived that
in these markets social and private returns differ, and therefore, in
some cases, governmentalintervention may increase the welfare of
all parties. Or private institutions may arise to take advantage
of the potential increases in welfare which can accrue to all parties.
By nature, however, these institutions are nonatomistic, and therefore concentrations of power -with ill consequences of their own can develop.
The author would especially like to thank Thomas Rothenberg for
invaluable commentsand inspiration. In addition he is indebted to Roy
Radner, Albert Fishlow, Bernard Saffran, William D. Nordhaus, Giorgio La
Malfa, Charles C. Holt, John Letiche, and the referee for help and suggestions. He would also like to thank the Indian Statistical Institute and the
Ford Foundation for financial support.

M A R K E T F O R "LEMONS": A N D M A R K E T M E C H A N I S M

489

T he...
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