The lemons problem applies equally well to used cars and borrowers.

Name: The lemons problem applies equally well to used cars and borrowers.
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The lemons problem, originally described in the context of used cars by economist George Akerlof, applies to any market where there is information asymmetry between buyers and sellers. This includes the market for borrowers, where lenders may have difficulty distinguishing between high-risk and low-risk borrowers.

The Lemons Problem Applies Equally Well to Used Cars and Borrowers