[mdlug-discuss] The Market for Lemons

[Ingles, Raymond]

> From: Robert Meier

> Is this why the engineering, computer science, technical 
> training markets are dying?

 "The paper by Akerlof describes how the interaction between quality
heterogeneity and asymmetrical information can lead to the disappearance
of a market where guarantees are indefinite. In this model, as quality is
undistinguishable beforehand by the buyer (due to the asymmetry of
information), incentives exist for the seller to pass off a low-quality
good as a higher-quality one."

 Of course, work on open-source projects allows one to convey accurate and
useful information about one's competency and skill set. So that portion
of the model breaks down (the 'buyer'/employer *can* get information about
the 'good'/seller before 'buying'/hiring) - *if* employers avail themselves
of it.

 Sincerely,

 Ray Ingles                                      (313) 227-2317

 "Anything a .460 Weatherby Express can't deal with is probably
    best addressed by a shaped-charge round anyway." - Crash

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