must learn asset quality over time. Imperfect information transmission reduces asymmetric information, but also reduces the …

informed about the type of their asset. The type determines the opportunity cost of the asset for sellers and the quality of … caused by adverse selection). The shape of the optimal tax schedule is also investigated. If the quality of assets for buyers … is a monotonic function of the sellers' opportunity cost (e.g., more distressed sellers have lower-quality assets), the …

participants (lemons) to behave opportunistically in the presence of perfect quality information. More specifically, the disclosed … information allows them to learn about quality differences between plums and lemons, deceive their counterparties, and move to a …