Pharmaceuticals as a Market for "Lemons"
Pharmaceuticals are the largest market in the world for "lemons". Co-authored with Joel Lexchin. This overview first considers and revises the economic theory of 'lemons', that is products like cars and drugs in which sellers know about hidden flaws and risks of harm but do not disclose them to buyers. The authors then describe how incentives and institutional practices reward companies for producing more 'lemons'. The market for more drugs with hidden risks and flaws is likely to flourish.