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Consider Akerlofs Market for Lemons: Utility for seller is Us = PXj M, utility for buyer is Ub = P 5 3Xj M, where Xj
Consider Akerlofs Market for Lemons: Utility for seller is Us = PXj M, utility for buyer is Ub = P 5 3Xj M, where Xj is car quality and M is an outside good whose price is equal to one. Further, X Uniform[0, 10]. What is the change in the expected utility for buyers? Will cars sell in this market
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