In this chapter we discuss the lemons problem and its effect on the efficient functioning of a market. This theory was initially developed by George Akerlof. Go to www.nobelprize.org/nobel_prizes/economics/laureates/2001/#. This site reports that Akerlof, Spence, and Stiglitz were awarded the Nobel Prize in Economics in 2001 for their work. Read this report down through the section on George Akerlof. Summarize his research ideas in one page.