If you buy a new car and try to sell it in the first yearindeed, in the

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If you buy a new car and try to sell it in the first year—indeed, in the first few weeks after you buy it—the price that you get is substantially less than the original price. Use your knowledge about signaling and Akerlof’s lemons model to explain why this price is low.

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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