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Unmasking the Lemon Market Problem: Decoding the Psychology of Decision-Making

Introduction In the realm of decision-making, an insidious challenge arises when buyers and sellers interact in markets characterized by information asymmetry. The Lemon Market Problem, a mental model deeply rooted in human psychology, plays a significant role in shaping our day-to-day choices. This concept refers to the adverse selection problem, where the quality of goods […]