But this moshy tivation is not entirely appropriate at


At the start of this chapter we used Gresham's law to motivate Akerlof's lemons model and problems of adverse selection. But this mo­ tivation is not entirely appropriate, at least for the way we described Gre­ sham's law. Why not? How can you make Greshams law appropriate? (For the second question, begin your answer with "Suppose some of the people in this economy are pathologically honest ....")

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