Johan has bought a car from the second hand market in Germany. Few weeks later he realized that the engine had a serious

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answerhappygod
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Johan has bought a car from the second hand market in Germany. Few weeks later he realized that the engine had a serious

Post by answerhappygod »

Johan has bought a car from the second hand market in Germany.
Few weeks later he realized that the engine had a serious
mechanical problem and needed a change. Akerlof, George A. "The
market for "lemons" has described a similar problem in finance.
What Johan could do if he had read the article? Why lemon problem
exists in finance of new ventures and how it can be mitigated?
Provide your own examples and discuss.
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