The Market for Lemons: Quality Uncertainty and the Market Mechanism on “Papers I Keep Rereading”, a list by Andre Coleman on TheLysts.
Details
Photo
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Name
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Authors
George A. Akerlof
Year
1970
Field
Economics
Why it stuck
Explains how bad products can push out good ones when buyers can’t tell the difference; I think about it every time I see a flashy but useless dashboard beat a solid, boring one.
My take
Sometimes I wonder if I’m the lemon or the market; either way, this is my go-to reminder that incentives matter more than my beautifully tuned model.
TheLysts