Umbhauer, Gisèle - Bureau d'Économie Théorique et Appliquée (BETA), … - 2007
The paper studies Akerlof's market for lemons in a new way. We firstly construct mixed Perfect Bayesian Nash equilibria in which all qualities are sold on the market even if the seller's strategy set is reduced to prices. Then we turn to the best-reply matching (BRM) approach developed by...