4 ms·
This theory breaks quickly when seller or buyer needs to do transaction urgently for many possible reasons. There was a guy (in a city I used to live) who drov
by gesman 8y ago
This theory breaks quickly when seller or buyer needs to do transaction urgently for many possible reasons.
There was a guy (in a city I used to live) who drove by a Porsche he likes and asked how much?
Lady asked him if he wants to see other cars. It happened that her husband just died and she wanted to get rid of his estate worth of luxury cars that she hated.
The guy borrowed money from his relatives and ended up with about dozen of rare/luxury/sports cars for pennies at a dollar.
- throwawaymath 8y agoThe theory doesn't "break" - it describes trends and effects which tend to occur. Examples like yours are not the norm, and the theory allows for instances where buyers have legitimate reasons for quickly offloading valuable goods.
- malshe 8y agoThis is not the theory breaking. In your example, the information asymmetry is other way around. 1) The buyer knows more about the true value of the cars compared to the seller. and/or 2) the seller doesn't care.
- lern_too_spel 8y agoThe theory predicts that peaches will have to be sold for less than they're worth if they have to be sold, so this fits the theory.