Lemons problem and its effects on the efficient functioning of a market
Chapter 8 of the Money, Banking, & Financial Markets textbook (Mishkin) discussed the lemons
problem and its effects on the efficient functioning of a market. This theory was originally
developed by George Akerlof.

Go to the Nobel Prize website:

http://www.nobelprize.org/nobel_prizes/economics/laureates/2001/akerlof-article.html.

Read this article and discuss why this theory is an important topic in economi