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
The Good Bad Egg all of Florabell's fine chinaware. "The Good Bad Egg" is a remake of the Andy Clyde short film "Knee Action" (1937). The Good Bad Egg The Good Bad Egg was an American comedy short released by Columbia Pictures on March 20, 1947, starring Joe DeRita, who later joined the Three Stooges and became "Curly Joe" DeRita, and featuring Dorothy Granger, and Norman Ollestead. This was the second of four shorts in the Joe DeRita series produced by Columbia from 1946-1948; all entries were remakes of other Columbia shorts. Joe Priggle (Joe DeRita) is an inventor staying at a rest home