Too Long; Didn't Read
<strong>1970</strong>. After 3 unsuccessful attempts, <a href="https://en.wikipedia.org/wiki/George_Akerlof">George Akerlof</a> publishes <em>“The Market for Lemons: Quality Uncertainty and the Market Mechanism”</em>. This paper will grant him Nobel Prize in 2001 and is still one of the most-cited in modern economic theory. Akerlof uses the example of the market of used cars to illustrate this basic concept: in a Market of goods of different quality where the seller has more information than the buyer about the quality of the goods sold, eventually the bad quality goods, Lemons in the used cars jargon, will expel the good ones, the Peaches in the same jargon.