منابع مشابه
Competing Mechanisms in Markets for Lemons∗
We study the competitive equilibria in a market with adverse selection and search frictions. Uninformed buyers post general direct mechanisms and informed sellers choose where to direct their search. We demonstrate that there exists a unique equilibrium allocation and characterize its properties: all buyers post the same mechanism and a low quality object is traded whenever such object is prese...
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The notion of uncertain delivery is extended to study exchange economies in which agents have different abilities to distinguish between goods (for example a car in good condition versus a car in bad condition). In this setting, it is useful to distinguish goods not only by their physical characteristics, but also by the agent that is bringing them to the market. Equilibrium is shown to exist, ...
متن کاملThe "Lemons" Problem in C2C Markets
Asymmetric information and adverse selection widely exist in used product markets. However, current C2C markets have two significant features: dynamic online evaluation system and “smarter” buyers (defined as customers with more prior information). In our primary analysis on the first feature, we find that higher quality used items are available in C2C markets and the size of the markets become...
متن کاملImperfect Competition and Efficiency in Lemons Markets
This paper studies the impact of competition on the degree of inefficiency in lemons markets. More precisely, we characterize the second-best mechanism (i.e., the optimal mechanism with private information) in a stylized lemons market with finite numbers of buyers and sellers. We then study the relationship between the degree of efficiency of the second-best mechanism and market competitiveness...
متن کاملBuyer Heterogeneity and Dynamic Sorting in Markets for Durable Lemons∗
In a durable good market where sellers have private information about quality, I identify certain problems in dynamic trading and sorting that arise in the presence of heterogeneity among buyers. Higher valuation buyers may have have lower incentive to wait to buy better quality at a later time period. As a result, even though higher quality sellers may wait to sell later at higher prices and d...
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ژورنال
عنوان ژورنال: Theoretical Economics
سال: 2019
ISSN: 1933-6837
DOI: 10.3982/te2921