Ethics-Governance: Article: How Trust is Abused in Free Markets: Enron's "Crooked 'E'"

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How Trust is Abused in Free Markets: Enron's "Crooked 'E'" How Trust is Abused in Free Markets: Enron's "Crooked 'E'" By William K. Black. This paper is a variant on Daniel B. Klein's article: "How Trust is Achieved in Free Markets"(Issues in Ethics, 8:1 (Summer 1997) Klein is associate professor of economics at SCU. George Akerlof shared the Nobel Prize in Economics in 2001 for his famous article on the "lemon's market" problem. A market can have a lemon's problem when one party to the transaction has far superior information to the other ("asymmetric information") and defects are not obvious. The classic bad car, the "lemon" led to Akerlof's name for his theory. A lemon's market is inefficient. Full Article: http://www.scu.edu/ethics/publications/submitted/black/freemarket.html


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