Aisha — Skeptical Buyer
Analyzing the market...
The Market for Lemons
An Information Asymmetry Game
The Lemons Problem (Akerlof, 1970)
Imagine a used car market. Sellers know if their car is good or a "lemon" (defective) — but buyers cannot tell the difference just by looking. What happens?
Buyers, fearing lemons, offer lower prices. Good sellers leave because prices are too low. Only lemon sellers remain. The market collapses — adverse selection drives out quality.
Your mission: You are a buyer with 500 tokens. Over 8 rounds, purchase products from sellers
whose true quality you cannot see. Can you beat the lemons problem?
Kavitha
Honest Seller — invests in quality & certification
Mohan
Lemon Seller — overstates quality, sells at premium
Aisha
Skeptical Buyer — shows rational market price