Selling Lemons


Akerlof, George A. (1970). “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism, 488.

Story behind the Passage

Again, I have to stress that I am losing track of all my blog topics. I swear I once thought about writing about the lemon paper above, which is a classic in economics. But I am not sure I actually did. So, I am simply taking the risk of writing about it again. The reason is very simple: I went to the car repair shop today to get an overview of what needs to be fixed in my car in order to pass the technical inspection. You have to know, however, that my garage is not just some garage, some service provider. My garage feels like home. This is , of course, because of the people there. And because of the cars, no doubt.

I love cars.

Now, I cannot write more about this particular garage in detail because, as always in writing, all words would miss the point. Writing cannot explain what it is like there. The only thing I can do is express my feelings for the place in poetry. On days like today, there is only poetry left. I feel like I accomplished more today than on many other days. But the real joy derived from my visit there. I always joke that, if nothing else works out and my business fails at some point, I am going to become a car dealer. There is hardly any business in the world that is so “agile,” immediate, and honest — if you are an honest car dealer.

The lemon article, just for the record, deals with the various problems that arise because used cars always run the risk of being “lemons,” i.e., bad quality. But the problem is not the quality itself but the fact that the buyer has no real means of actually gaining detailed information about the quality. This is what economists call asymmetric information. And that is about all I am going to tell you about this. You can Google everything else. Just punch in the name of the article and you can dive into all kinds of market problems which economists and partly business researchers like to mess with.

I am focusing on the important things in life.

My Learnings

Where is that rotten motor?

Did you change the light bulbs already?

Where is that fucking tire?

What the hell you are you doing here?

Park that car over there.

There is no space for this shit over here.

Damn it, where did I put the yoghurt?

Who is using the bathroom again?

What? Can you speak up when you are talking to me on the phone?

Just check that number on the tire again.

There is no such fucking thing as 165!

Crap, I did not see this bill before.

Where did this come from?

Why are you sweating like a pig all day?

Get me that screwdriver

Or do you want to wait here all day?

That break disc needs to get off.

Hell, get in the car.

Not the driver’s seat!

We are just moving three yards.

Is that a fucking motorcycle you got there?

Are you kidding me?

Is it just pretty?

What the hell do you need an ABS-system for?

Are you a girl or what?

How much was it?

Well, not bad.

You can have fun with that.

Got one of thse in the 70s.

Enjoyed it very much.

I sold your Polo, by the way.

It is an old-timer now.

Some buddy wanted it last week.

Paid up front.

Wish I had more of these cute little Italians.

Looks pretty, right?

What do you think?

Shit, dude, get me more light over here.

Are you gonna watch the soccer game?


I wish I could be there all day.

Just an hour per day would fill half a book.

My garage is the writing desk.

Underneath, we are all the same.

Lemons.


Reflection Questions

1) What are five typical characteristics that come to your mind when you think of used car dealers?

2) What is the most complicated problem you ever fixed yourself in your car (bike/motorcycle alternatively)?

3) If you were to write a book about a business wo/man — which industry/sector would you prefer the person to work in? Why?

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