George Akerloff theorized that adverse selection in the used car market could be so bad that the market completely unravels and no good used cars are offered for sale.But,of course,there probably are some good used cars offered for sale in real used car markets.What methods have developed in the used car market to overcome this problem of asymmetric information and to prevent market unraveling?

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The Answer of George Akerloff theorized that adverse selection in the used car market could be so bad that the market completely unravels and no good used cars are offered for sale.But,of course,there probably are some good used cars offered for sale in real used car markets.What methods have developed in the used car market to overcome this problem of asymmetric information and to prevent market unraveling?

George Akerloff Theorized That Adverse Selection in the Used Car