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.

  1. Lemons Problem

    The issue of information asymmetry between the buyer and seller ...
  2. Douglass C. North

    An American economist and winner of the 1993 Nobel Memorial Prize ...
  3. James M. Buchanan Jr.

    An American economist and winner of the 1986 Nobel Memorial Prize ...
  4. Lemon Laws

    Lemon laws are a form of consumer protection, they provide legal ...
  5. Robert A. Mundell

    The winner of the 1999 Nobel Prize in Economics for his research ...
  6. Nobel Memorial Prize In Economic ...

    A prestigious award acknowledging outstanding contributions to ...
Related Articles
  1. Insights

    5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.
  2. Insights

    Economist Joseph Stiglitz Would Give Trump an "F" on Economics

    Trump would fail distinguished economist Joseph Stiglitz's class.
  3. Investing

    Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  4. Tech

    Bitcoin Should Be Outlawed, Says Nobel Prize Winner Joseph Stiglitz

    The former chief economist at the World Bank made the comment during an interview with Bloomberg.
  5. Investing

    Modern Portfolio Theory Vs. Behavioral Finance

    Or: How financial markets would work in an ideal world vs. how they work in the real world.
  6. Investing

    7 controversial investing theories

    Find out information about seven controversial investing theories that attempt to explain and influence the market as well as the actions of investors.
  7. Investing

    Efficient Market Hypothesis

    An investment theory that states it is impossible to "beat the market".
  8. Financial Advisor

    Who is Richard Thaler, Economics Nobel Prize Winner?

    Thaler, one of the founding behavioral economists, won the 2017 Nobel Prize in Economic Sciences.
  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. 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 >>
  3. 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 >>
  4. Is a good's production cost related to its value?

    Learn about the history and debate regarding the metrics used to determine the value of a good and which theories place emphasis ... Read Answer >>
  5. How Does an Efficient Market Affect Investors?

    The efficient market hypothesis refers to aggregated decisions of many market participants. Read Answer >>
Hot Definitions
  1. Liquidity

    Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's ...
  2. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  3. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  4. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  5. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center