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, The Bad & The 4-Skins The Good, The Bad & The 4-Skins The Good, The Bad & The 4-Skins is the first album by English punk rock/Oi! band, The 4-Skins. Released in June 1982 on Secret Records, the album topped the UK independent and punk charts, and entered the Top 100 of the UK Albums Chart. Side A of the original LP contained studio recordings, and Side B featured live versions of several previously released songs. The album was later combined with follow-up release, "A Fistful Of...4-Skins" (omitting the track "One Law for Them" due to space limitations) and released on a single CD by