Definitions

Lemon Problem

Posted By: TradersLog

The lemon problem refers to an imbalance or asymmetry of information in the markets – a popular example of the lemon problem is in the secondhand car market, where sellers know whether or nor their car is a lemon, but where buyers have no way of knowing for certain.

Enjoying the Lemon Problem information? Sign up for the newsletter today and access even more top quality trading related content! Learn More


Email: