Three qualities of second-hand cars (High, Medium and Low) are available for sale in Amsterdam. Suppose the three qualities are supplied in equal proportions and there are more buyers than sellers. Sellers know the quality of the car they are selling and only sell if their valuation is met. Buyers cannot identify the quality of cars, but know that sellers have this private information. The valuations of Buyers and Sellers for each quality of car are:

Quality Buyer's Value Seller's value High $3000 $2500 Medium f1700 f1500 Low $400 $500