Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 23

The late 1990s saw a huge number of initial offerings of common stock by Internet start-up companies. How might the lemons model be applied to these initial offerings? Did subsequent events bear out the model?3B. Chezum and D. Wimmer, ''Roses or Lemons: Adverse Selection in the Market for Thoroughbred Yearlings,'' Review of Economics and(August 1997): 521-526.