A Market for Lemons: George Akerlof, Information Asymmetry, Imperfect Information & Market Failures

Описание: In perhaps one of the most interesting Nobel price stories with respect to economics, George Akerlof managed to hit it big thanks to his research on information asymmetry, with "A Market for Lemons" being iconic in this respect.


This video explains, in just one minute, what information asymmetry is all about, why you should care and how "A Market for Lemons" can help you understand the concept. Don't let the "Nobel thingy" make you believe the concepts George Akerlof tried to put on the table are difficult to comprehend.


On the contrary.


"A Market for Lemons" was explained through this video in such an easy to follow manner that... well, literally anyone with a minute or so (slightly more, to be fair) to spare will understand what information asymmetry is all about.



Of course, as always, it is important to understand that while George Akerlof's work in general and "A Market for Lemons" in particular has tremendous merits, there's no such thing as perfection in the world of economics. As such, George Akerlof's information asymmetry work has also been criticized by some economists, as explained through this animation, but the bottom line is this: including this concept in your proverbial arsenal would be highly, highly recommended.