Tagged: Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism

George Akerlof by Rachel Idzerda for the Globe and Mail

George Akerlof: A citizen of the profession

“Economic theorists, like French chefs in regard to food, have developed stylized models whose ingredients are limited by some unwritten rules. Just as traditional French cooking does not use seaweed or raw fish, so neoclassical models do not make assumptions derived from psychology, anthropology, or sociology. I disagree with any...