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The paper as a whole relates quality and uncertainty.

The existence of goods


with many factors and substitute poses interesting problems for the theory of
markets. An interaction between quality differences and uncertainty explains and
reflects a lot about the labor market. Lemons problem theory has the same
realization about the information between quality and uncertainty. As what the
author disclose he was extraordinary happy to have been able to write this theory
cause it gives some basic method of economics that emphasize some aspects of
reality.
Lemons problem theory deals a lot with a problem as old as markets
themselves. It concerns how old cars traders respond to the natural question: “if he
wants to sell that used car, do I really want to buy it?” Such questioning is
fundamental to the market of used cars, but it is also at least minimally present in
every market transaction.
In this paper, Akerlof asserted that car buyers possess different information
than car sellers, giving the sellers an incentive to sell goods of poor quality without
lowering the price to compensate for the inferiority. Akerlof uses the colloquial
term lemons to refer to bad cars. He argues that buyers often do not have the
information to distinguish a lemon from a good car. Thus, sellers of good cars
cannot get better-than-average market prices for their products. The theory argues
that low-quality and high-quality products can command the same price, given a
lack of information on the buyer's side. The mere presence of inferior goods
destroys the market for quality goods when information is not fair and imperfect.
Reason why asymmetric information theory was true that sellers may possess
more information than buyers, skewing the price of goods sold. Buyers cannot tell
which cars are lemons, but, of course, sellers know. Therefore, a buyer knows that
there is some probability that the car he buys will be a lemon and is willing to pay
less than he would pay if he were certain that he was buying a high-quality car.
Basically, the "lemon principle" is that bad cars chase good ones out of the
market and bad money drives out good money through mechanism of exchange
rates. Lemon principle explain a lot about how legit information and the
information itself about a certain things or a certain works is needed in order to
have equal outcome between the buyer and the seller's

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