by George A. Akerlof
2001 Laureate in Economics
I wrote "The Market for 'Lemons,'" (click here) (a 13-page paper for which I was
awarded the Prize in Economics) during my first year as assistant
professor at Berkeley, in 1966-67.* "Lemons" deals
with a problem as old as markets themselves. It concerns how
horse traders respond to the natural question: "if he wants
to sell that horse, do I really want to buy
it?" Such questioning is fundamental to the market for
horses and used cars, but it is also at least minimally present
in every market transaction....
"...Unemployment is an issue that has driven your work over the years..."
