Decentralized trade mitigates the lemons problem

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dc.contributor.author Moreno, D
dc.contributor.author Wooders, J
dc.date.accessioned 2012-02-02T11:02:13Z
dc.date.issued 2010-05
dc.identifier.citation International Economic Review, 2010, 51 (2), pp. 383 - 399
dc.identifier.issn 0020-6598
dc.identifier.other C1UNSUBMIT en_US
dc.identifier.uri http://hdl.handle.net/10453/15711
dc.description.abstract In markets with adverse selection, only low-quality units trade in the competitive equilibrium when the average quality of the good held by sellers is low. We show that under decentralized trade, however, both high- and low-quality units trade, although with delay. Moreover, when frictions are small, the surplus realized is greater than the (static) competitive surplus. Thus, decentralized trade mitigates the lemons problem. Remarkably, payoffs are competitive as frictions vanish, even though both high- and low-quality units continue to trade, and there is trade at several prices. © (2010) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
dc.language eng
dc.relation.isbasedon 10.1111/j.1468-2354.2010.00584.x
dc.title Decentralized trade mitigates the lemons problem
dc.type Journal Article
dc.description.version Published
dc.parent International Economic Review
dc.journal.volume 2
dc.journal.volume 51
dc.journal.number 2 en_US
dc.publocation Malden en_US
dc.publocation Newcastle Upon Tyne, UK
dc.identifier.startpage 383 en_US
dc.identifier.endpage 399 en_US
dc.cauo.name BUS.Centre for the Study of Choice en_US
dc.conference Verified OK en_US
dc.for 1402 Applied Economics
dc.personcode 112051
dc.percentage 100 en_US
dc.classification.name Applied Economics en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.edition First
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/Economics
pubs.organisational-group /University of Technology Sydney/Strength - Study of Choice
utslib.copyright.status Closed Access
utslib.copyright.date 2015-04-15 12:17:09.805752+10
pubs.consider-herdc false
utslib.collection.history Closed (ID: 3)


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