博弈论Chapter 8.pptVIP

Given these restrictions, if the seller offers $4,000, a price equal to the average quality, the buyer will deduce that the seller does not have a good car. The very fact that the car is for sale demonstrates its low quality. Knowing that for $4,000 he would be sold only lemons, the buyer would refuse to pay more than $2,000. Let us assume that an indifferent seller sells his car, in which case half of the cars are traded in equilibrium, all of them lemons. A friendly advisor might suggest to the owner of a good car that he wait until all the lemons have been sold and then sell his own car, si