Concept
Market For Lemons 0
The 'Market for Lemons' refers to a situation where the quality of goods being sold is uncertain, leading to a market failure characterized by the prevalence of low-quality products ('lemons') over high-quality ones. This concept highlights the problem of information asymmetry between buyers and sellers, where sellers have more information about the product quality than buyers, ultimately driving down the average quality and price of goods in the market.
Relevant Degrees