 Abstract
We analyze a version of Akerlof's market for lemons in which a sequence of buyers make offers to a long-lived seller endowed with a single unit for sale. We consider both the case in which previous offers are observable and the case in which they are not. When offers are observable, trade may only occur in the first period, so that the resulting inefficiency may be worse than in the static model. In the unobservable case, trade occurs with probability one eventually
Authors:
Johannes Hoerner & Nicolas VIEILLE
(2006)
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Public vs. Private Offers in the Market for Lemons
http://ideas.repec.org/p/red/sed006/813.html
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