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Exchange markets with endogenous quality: When the lemons problem enchances trade
Barreda-Tarrazona, Iván; García-Gallego, Aurora; Georgantzis, Nikolaos; Mitrokostas, Evangelos; Jaber-Lopez, Tarek; Ziros, Nicholas (2016)A worrying feature of Akerlof’s (1970) model is that the existence of sufficiently many products of relatively low quality (“lemons”) in a market may not only drive those of high quality ...