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In a used cars market, there are many car sellers with even larger number of car buyers. A car priced at 800 is considered high
In a used cars market, there are many car sellers with even larger number of car buyers. A car priced at 800 is considered high quality to the seller, a car at 200 is considered low quality to the seller. To a buyer, for any quality of a car, the value to the buyer is x times the value to the sellers. x>1. Sellers have information about the quality of their own car, whereas buyers know 2/3 of cars are low quality and the remainder being high quality. Agents are risk-neutral. For which values of x will sellers sell their cars?
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