The lemons model suggests that owners will have superior information about the quality of their cars and incentives to conceal it, to which buyers will respond by lowering their bids.

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The lemons model, also known as the market for lemons theory, suggests that when there is asymmetric information between buyers and sellers, sellers (in this case, car owners) will have better information about the quality of their products and will have an incentive to conceal any negative information. This results in buyers being wary of purchasing these cars, leading to a decrease in demand and lower bids.

The Lemons Model Suggests That Owners Will Have Superior Information