Ian Mulheirn

Budget 2008: A mortgage market for lemons?

Ian Mulheirn on the Government's mortgage policy

issue 26 January 2008

In his seminal 1970 paper, Nobel laureate George Akerlof identified a whole class of economic problems as being driven by asymmetric information between two parties involved in an exchange. Applied to the market for second-hand cars, Akerlof noted that while quality varies, only the seller knows a car’s true quality.

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