George A. Akerlof

DEFINITION of 'George A. Akerlof'

A winner of the 2001 Nobel Prize in Economics, along with Michael Spence and Joseph Stiglitz, for his theory of information asymmetry as expressed in his famous 1970 paper, "The Market for Lemons," which discusses imperfect information in the market for used cars. He is also well known for his efficiency wage hypothesis, which suggests that wages are determined by the efficiency goals of employers in addition to supply and demand forces.

BREAKING DOWN 'George A. Akerlof'

Akerlof is an economics professor at the University of California at Berkeley; he also taught briefly at the London School of Economics. He was born in Connecticut in 1940 and earned his PhD from the Massachusetts Institute of Technology. Akerlof's research focuses on macroeconomics, monetary theory and behavioral economics.

RELATED TERMS
  1. A. Michael Spence

    An American economist who has won the Nobel Memorial Prize in ...
  2. Lemons Problem

    The issue of information asymmetry between the buyer and seller ...
  3. Joseph Stiglitz

    An American neo-Keynesian economist and winner of the 2001 Nobel ...
  4. Douglass C. North

    An American economist and winner of the 1993 Nobel Memorial Prize ...
  5. John R. Hicks

    A British economist who received the 1972 Nobel Memorial Prize ...
  6. Lemon

    A very disappointing investment. A lemon is an investment in ...
Related Articles
  1. Personal Finance

    How To Avoid Buying A "Lemon" Product

    A lack of information can lead people into bad purchases and bad investments. Find out how you can avoid these lemons.
  2. Managing Wealth

    Janet Yellen Success Story: Net Worth, Education & Top Quotes

    Look into the life and academic career of Janet Yellen, the first female chair of the Federal Reserve and a noted Keynesian economist.
  3. The Dangerous Idea Keeping You From Outsized Gains

    There's a dangerous idea in the world of finance that's been floating around for years. The man who coined this idea won a Nobel Prize for his work, but even he has stated that there are "threats" ...
  4. Managing Wealth

    Did You Buy A Lemon?

    Find out how to fix a sour deal on your car purchase.
  5. Trading

    Modern Portfolio Theory vs. Behavioral Finance

    Modern portfolio theory and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and positions ...
  6. Trading

    Market Efficiency Basics

    Market efficiency theory states that a stock’s price will fully reflect all available and relevant information at any given time.
  7. Trading

    7 Controversial Investing Theories

    We take a closer look at the theories that attempt to explain and influence the market.
  8. Investing

    Efficient Market Hypothesis

    An investment theory that states it is impossible to "beat the market".
  9. Personal Finance

    Winning The Jackpot: Dream Or Financial Nightmare?

    Don't assume all prizes are free. Many come with enough costs to render them worthless.
  10. Trading

    Behavioral Finance: Background

    By Albert PhungBefore we go over the specific concepts behind behavioral finance, let's take a more general look at this branch of finance. In this section, we'll examine how it compares to conventional ...
RELATED FAQS
  1. What is the theory of asymmetric information in economics?

    Read a brief overview of asymmetric information theory in economics, the development of its main arguments and why some challenge ... Read Answer >>
  2. What are the differences between weak, strong and semi-strong versions of the Efficient ...

    Discover how the efficient market theory is broken down into three versions, the hallmarks of each and the anomalies that ... Read Answer >>
  3. Do any markets not exhibit asymmetric information?

    Find out why every market possesses information asymmetry, and why this isn't necessarily a huge or insurmountable problem ... Read Answer >>
  4. Are there high capital gains when there's low income?

    My father sold a piece of property that he inherited in order to pay for assisted living expenses. He ... Read Answer >>
  5. Has the Efficient Market Hypothesis been proven correct or incorrect?

    Explore the efficient market hypothesis and understand the extent to which this theory and its conclusions are correct or ... Read Answer >>
  6. How does adverse selection contribute to market failure?

    Examine an brief introduction to the adverse selection theory of market failure, and find out why economists disagree about ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center