Joke Collection Website - Cold jokes - Is there anything that sounds awesome, but when you think about it, it’s all nonsense?
Is there anything that sounds awesome, but when you think about it, it’s all nonsense?
Lemon Market, as the name suggests, is a market for selling lemons. You will never know whether the lemons here are sour or not, unless you buy one and taste it at home (yes, it is forbidden to taste before buying). The lemon market originally referred to the market for defective products, especially the second-hand market, because "lemon" means "defective product" in American slang. There is a common phenomenon of information asymmetry in this type of market, that is, the seller knows much more about the true condition of the product than the buyer does. Since the buyer does not know the true value of the goods and has difficulty distinguishing between good and bad goods, he is only willing to pay the average price or even lower. Regarding the average price, those who provide good products will naturally suffer losses, while those who provide bad products will benefit. Therefore, good products will gradually withdraw and the market will be occupied by inferior products. This is adverse selection in a market with asymmetric information. Now, the market for lemons can generally refer to a market with asymmetric information.
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