[Econfon] readings

[Noemi Giszpenc]

Hi class,
Could you go to the class website and download and read the pdf: "The Market 
for Lemons." This is a classic article by George Akerlof that goes over the 
problems of markets with information asymmetry (like those for used cars, 
the "lemons" of the title). There is some math in there that may confuse 
you--if so feel free to skip over it. The point is made pretty well using 
English.

Akerlof refers early on to something called "Gresham's Law." There is a good 
summary of what that is at: http://en.wikipedia.org/wiki/Gresham's_Law  
(it's not all that complicated).

We'll be going over the implications of information asymmetry, particularly 
in markets for investment and insurance, on Tuesday.

See you then!
Noemi

NOTE: it may take a while for the pdf to get up there--if it is not on the 
website when you go, check again later.

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