> Capitalism often leads to suboptimal outcomes because there's no reasonable way to know better Also known as the market for lemons: https://en.wikipedia.org/

> Capitalism often leads to suboptimal outcomes because there's no reasonable way to know better Also known as the market for lemons: https://en.wikipedia.org/wiki/The_Market_for_Lemons https://en.wikipedia.org/wiki/The_Market_for_Lemons Akerlof's paper shows how prices can determine the quality of goods traded on the market. Low prices drive away sellers of high-quality goods, leaving only lemons behind. In 2001, Akerlof, along with Michael Spence, and Joseph Stiglitz, jointly received the Nobel Memorial Prize in Economic Sciences, for their research on issues related to asymmetric information.