Suppose that, to deal with adverse selection problems, a new federal lemons law requires all used car

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Suppose that, to deal with adverse selection problems, a new federal lemons law requires all used car dealerships to provide a one-year warranty for each car they sell. Explain how this new law, designed to reduce adverse selection, might increase the problem of moral hazard.
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Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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