Mota is a new company that wants to fix the famous “lemons” problem by restoring trust to the used car market.. When sellers put up their cars, Mota asks them typical questions about the ...

Origins of the Lemons Problem Theory . The lemons problem theory was described by George Akerlof in a 1970 paper titled "The Market for Lemons: Quality Uncertainty and the Market Mechanism." ...

there is a “lemons” problem, also known as adverse selection. Even with a reasonable degree of disclosure, the selling banks will still know more about their assets than the buyers.