Beautiful Lemons: Adverse Selection in Durable-Goods Markets with Sorting

Published Online:https://doi.org/10.1287/mnsc.2016.2495

References

  • Adams C, Hosken L, Newberry P (2011) Vettes and lemons on eBay. Quant. Marketing Econom. 9(2):109–127.CrossrefGoogle Scholar
  • Akerlof G (1970) The market for lemons: Qualitative uncertainty and the market mechanism. Quart. J. Econom. 84(3):488–500.CrossrefGoogle Scholar
  • Anderson S, Ginsburgh V (1994) Price discrimination via second-hand markets. Eur. Econom. Rev. 38(1):23–44.CrossrefGoogle Scholar
  • Bond E (1982) A direct test of the “lemons” model: The market for used pickup trucks. Amer. Econom. Rev. 72(4):836–840.Google Scholar
  • Bond E (1984) Test of the lemons model: Reply. Amer. Econom. Rev. 74(4):801–804.Google Scholar
  • Busse M, Silva-Risso J (2010) “One discriminatory rent” or “double jeopardy”: Multicomponent negotiation for new car purchases. Amer. Econom. Rev.: Papers Proc. 100(2):470–474.CrossrefGoogle Scholar
  • Cai H, Riley J, Ye L (2007) Reserve price signaling. J. Econom. Theory 135(1):253–268.CrossrefGoogle Scholar
  • Chezum B, Wimmer B (1997) Roses or lemons: Adverse selection in the market for thoroughbred yearlings. Rev. Econom. Statist. 79(3):521–526.CrossrefGoogle Scholar
  • Emons W, Sheldon G (2009) The market for used cars: New evidence of the lemons phenomenon. Appl. Econom. 41(22):2867–2885.CrossrefGoogle Scholar
  • Engers M, Hartmann M, Stern S (2009) Are lemons really hot potatoes? Internat. J. Indust. Organ. 27(2):250–263.CrossrefGoogle Scholar
  • Genesove D (1993) Adverse selection in the wholesale used car market. J. Political Econom. 101(4):644–665.CrossrefGoogle Scholar
  • Gilligan T (2004) Lemons and leases in the used business aircraft market. J. Political Econom. 112(5):1157–1180.CrossrefGoogle Scholar
  • Glosten L, Milgrom P (1985) Bid, ask, and transaction prices in a specialist market with heterogeneously informed traders. J. Financial Econom. 14(1):71–100.CrossrefGoogle Scholar
  • Griliches Z (1961) Hedonic price indexes for automobiles: An econometric analysis of quality change. The Price Statistics of the Federal Government, Report of the Price Statistics Review Committee, National Bureau of Economic Research, 173–196.Google Scholar
  • Hendel I, Lizzeri A (1999a) Interfering with secondary markets. RAND J. Econom. 30(1):1–21.CrossrefGoogle Scholar
  • Hendel I, Lizzeri A (1999b) Adverse selection in durable goods markets. Amer. Econom. Rev. 89(5):1097–1115.CrossrefGoogle Scholar
  • Hendel I, Lizzeri A (2002) The role of leasing under adverse selection. J. Political Econom. 110(1):113–143.CrossrefGoogle Scholar
  • Hendel I, Lizzeri A, Siniscalchi M (2005) Efficient sorting in a dynamic adverse-selection model. Rev. Econom. Stud. 72(2): 467–497.CrossrefGoogle Scholar
  • Johnson J, Waldman M (2003) Leasing, lemons, and buybacks. RAND J. Econom. 34(2):247–265.CrossrefGoogle Scholar
  • Johnson J, Waldman M (2010) Leasing, lemons, and moral hazard. J. Law Econom. 53(2):307–328.CrossrefGoogle Scholar
  • Johnson J, Waldman M, Schneider H (2014) The role and growth of new-car leasing: Theory and evidence. J. Law Econom. 57(3):140–154.CrossrefGoogle Scholar
  • Kim J-C (1985) The market for “lemons” reconsidered: A model of the used car market with asymmetric information. Amer. Econom. Rev. 75(4):836–843.Google Scholar
  • Lal R, Sarvary M (1999) When and how is the Internet likely to decrease price competition? Marketing Sci. 18(4):485–503.LinkGoogle Scholar
  • Lewis G (2011) Asymmetric information, adverse selection, and online disclosures: The case of eBay motors. Amer. Econom. Rev. 101(4):1535–1546.CrossrefGoogle Scholar
  • Mussa M, Rosen S (1978) Monopoly and product quality. J. Econom. Theory 18(2):301–317.CrossrefGoogle Scholar
  • Peterson J, Schneider H (2014) Adverse selection in the used-car market: Evidence from purchase and repair patterns in the consumer expenditure survey. RAND J. Econom. 45(1):140–154.CrossrefGoogle Scholar
  • Porter R, Sattler P (1999) Patterns of trade in the market for used durables: Theory and evidence. NBER Working Paper w7149, National Bureau of Economic Research, Cambridge, MA.CrossrefGoogle Scholar
  • Rosenman R, Wilson W (1991) Quality differentials and prices: Are cherries lemons? J. Indust. Econom. 39(6):649–658.CrossrefGoogle Scholar
  • Schneider H (2012) Agency problems and reputation in expert services: Evidence from auto repair. J. Indust. Econom. 60(3):406–433.CrossrefGoogle Scholar
  • Scott Morton F, Zettelmeyer F, Silva-Risso J (2001) Internet car retailing. J. Indust. Econom. 49(4):501–519.CrossrefGoogle Scholar
  • Swan P (1970) Durability of consumption goods. Amer. Econom. Rev. 60(5):884–894.Google Scholar
  • Swan P (1971) The durability of goods and regulation of monopoly. Bell J. Econom. Management Sci. 2(1):347–357.CrossrefGoogle Scholar
  • Waldman M (1996a) Durable goods pricing when quality matters. J. Bus. 69(4):489–510.CrossrefGoogle Scholar
  • Waldman M (1996b) Planned obsolescence and the R&D decision. RAND J. Econom. 27(3):583–595.CrossrefGoogle Scholar
  • Wilson C (1980) The nature of equilibrium in markets with adverse selection. Bell J. Econom. 11(1):108–130.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.