Under this model, if the transaction of quality goods happened anywhere, some buyer reached information symmetry. But among the assumptions in the article is that sellers have no alternate market (they just "leave", whatever that means) and there is no credible way to provide information on the quality of goods. But then how do buyers know to lower their prices with what's left in the market?
There're a lot of unreasonable assumptions and maybe that's why the paper was rejected 3 times. You can also run the thought experiment backwards: lemons should be removed from the market first since, as stated, those are the ones that sell, but then you should be left with a market full of peaches.
There're a lot of unreasonable assumptions and maybe that's why the paper was rejected 3 times. You can also run the thought experiment backwards: lemons should be removed from the market first since, as stated, those are the ones that sell, but then you should be left with a market full of peaches.