Does that mean akerlofs model is wrong

Reference no: EM131831404

George Akerlof's model of the used car market results in a market where only lemons are sold and there is no market for high-quality used cars.

But, in fact, we observe that the used car market is a robust market where millions of used cars of varying quality are sold.

Does that mean Akerlof's model is wrong? Why or why not?

Reference no: EM131831404

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