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Lemons and Asymmetric information

Lemons and Asymmetric informationYou are looking to buy a used car. You see an advertisement for a car that sounds like a very good buy; it is offered at a low price and the seller claims that it is in excellent condition and has had almost no problems. Will you believe him? Will you buy the car? What might you do before deciding?Suppose the car is offered for sale by friend. How might that change your thinking about this purchase?How would you feel if the car is offered for sale by a long-established used car dealer?

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