The Market for Lemons car. This, in turn, motivates the owners of moderately good cars not to sell, and so on. The result is that a market in which there is asymmetric information with respect to quality shows characteristics similar to those described by Gresham's Law: the bad drives out the good. (Although Gresham's principle applies more specifically to exchange rates, modified analogies can be drawn.) Akerlof considers a situation in which demand "D" for used cars depends on the cars price "p" and quality "µ" = "µ"("p") and the supply depends on price alone. Economic equilibrium is given by "S"("p") = "D"("p","µ") and
Alexander and the Terrible, Horrible, No Good, Very Bad Day Alexander says tomorrow things must not get any worse. On Saturday, January 13, 1990, the book was adapted into a 30-minute animated musical television special that was produced by Klasky Csupo and aired on HBO in the United States. While the special is mostly true to the book, the following differences are: This special features 12 more bad things for Alexander: The special also includes 4 good things to show the audience that even a bad day can have something good in it: Although mentioned, the three following bad things are not shown in the special: The special also included