Job Recruitment Website - Zhaopincom - Is there anything that sounds awesome, but when you think about it, it's all nonsense?
Is there anything that sounds awesome, but when you think about it, it's all nonsense?
Lemon market, as its name implies, is a market for selling lemons. You never know if the lemon here is sour unless you buy one at home (yes, it is forbidden to taste it before buying it). Lemon market originally refers to the defective market, especially the second-hand market, because "lemon" means "defective product" in American slang. Information asymmetry is common in this kind of market, that is, the seller knows much more about the real situation of the product than the buyer. Because buyers don't know the real value of goods, and it is difficult to distinguish between good and bad goods, they are only willing to pay the average price or even lower. For the average price, those who provide good goods will naturally suffer, while those who provide bad goods will benefit, so good goods will gradually withdraw and the market will be occupied by inferior products, which is the adverse selection in the information asymmetry market. Now, lemon market can generally refer to the market with asymmetric information.
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