Akerlof, George

George Akerlof is an influential economist best known for his work on information asymmetry, which describes situations where one party in a transaction has more or better information than the other. His famous 1970 paper, "The Market for Lemons," illustrates how this can lead to market failure, especially in markets like used cars, where sellers may have information about the car's quality that buyers lack. This concept has broad implications, affecting many fields, including finance, healthcare, and labor markets. Akerlof's insights help explain why some markets underperform and how information affects economic decisions.