Baharad, Eyal; Kliger, Doron - 2010
This paper merges the non-expected utility approach (Tversky and Kahneman (1992) and Quiggin (1982)) into Akerlof's (1970) model of "Market for lemons". Our main finding suggests that when the proportion of traded "lemons" is high (low), the problem of market failure is mitigated (enhanced). We...
