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They are alternatives to selling, but you typically receive less money than you would in a straight sale. I think I'm asking the same question as you. > Given
by darkerside 8y ago
They are alternatives to selling, but you typically receive less money than you would in a straight sale. I think I'm asking the same question as you.
> Given the fixed price at which buyers will buy, sellers will sell only when they hold "lemons" (since plemon < pavg) and they will leave the market when they hold "peaches" (since ppeach > pavg).
My point is that this is a highly idealized and theoretical model. Life doesn't work this way.
- jonathankoren 8y agoI would argue that the alternatives you've listed (e.g. donation), are functionally equivalent to selling. You're trading a good (the car), for money. > My point is that this is a highly idealized and theoretical model. Life doesn't work this way. Such is every nonbehavioral economics paper ever written.
- darkerside 8y agoYou're missing my point. Those alternatives typically provide you LESS money than selling. How are people supposedly "leaving" the market? Parking an unused car on the street?