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  The example of ‘Lemons’ given by George Akerlof, (1970) in his Nobel prize-winning paper demonstrates what are the effects of asymmetric information in this particular case. The customers, doubting the credibility of the owners of good and pricier cars, had an incentive to purchase the less expensive ones. That situation kept happening and cause the best vehicles to be outrun by the bad or average quality cars. As a result, buyers started to lower their expectations for any given car meaning that the average willingness to pay decreased. Those circumstances would encourage the owner of good cars not to sell and leave the market, which eventually would lead to a market failure. This instance is an example of hidden attributes, the problem that occurs when some characteristic of the person involved in an exchange is not known to other parties. As a repercussion of the aforementioned mechanism, markets might completely fail to prevail.
      The existence of imperfect information can be the reason for both buyers and sellers to refrain from taking interest in the market. Consumers might become discouraged because they cannot determine exactly the condition of a product. Sellers, on the other hand, might be hesitant to take part, because it is difficult to prove the quality of their goods to buyers and since consumers cannot determine which products have higher quality (as many times a buyer confronted with imperfect information will tend to believe that the price declares something about the quality of the product), they are unlikely to be willing to pay a higher price for such goods. When imperfect information is earnest, markets may become terribly thin since a comparatively very small number of participants attempt to exchange enough information that they can agree on a cost. 

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