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Johan has bought a car from the second hand market in Germany. Few weeks later he realized that the engine had a serious mechanical problem

Johan has bought a car from the second hand market in Germany. Few weeks later he realized that the engine had a serious mechanical problem and needed a change. Akerlof, George A. "The market for "lemons" has described a similar problem in finance. What Johan could do if he had read the article? Why lemon problem exists in finance of new ventures and how it can be mitigated? Provide your own examples and discuss.

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