Posted: Tue Mar 08, 2011 2:37 pm
I guess I'll get this one started, mostly because I was confused about one of the bonuses in the set.
I don't think "the market for lemons" should actually be described as a situation, as it's only the title of an important paper about the topic (information asymmetry), and the actual phrase "market for lemons" doesn't actually come up in the paper itself (besides the title, as far as I remember). Though I was glad to see it come up, I feel like this might have thrown teams off by prompting them to say "information asymmetry" for the first part, as I ended up doing.11. George Akerloff posed this example to explain why the owners of good used cars would be unable to sell them at a fair price. For 10 points each:
 Identify this situation in which buyers’ uncertainty about the quality of cars causes them to become less willing to pay a given price for any used car.
ANSWER: the market for lemons (accept anything that mentions lemons)