3 ms·
I think the latter summary should read: "if determining the 'lemon-ness' of a product has a high cost, it lowers the drive for finding more non-lemons and incre
by ojilles 15y ago
I think the latter summary should read: "if determining the 'lemon-ness' of a product has a high cost, it lowers the drive for finding more non-lemons and increases both the price and tenure of the existing ones"
(Not sure if that makes sense in _your_ example, but thats how I read the paper)
- eru 15y agoThere's a somewhat similar effect in other segmented markets. (I hope segmented is the right word here.) In areas with rent control, the bits of the property market that are less restricted tend to be pricier, because they have to absorb all the excess demand.