View source for Critical Mass Problems

==Lemons==

It is well known that as soon as a new car is bought and driven off the lot, its value drops significantly. Walrasian economics cannot explain this phenomena. 

===The Model:===
Cars can be divided into two categories and two subcategories of cars: 
*First, a car is new or used
*Second, a car is good or bad (a <nowiki>"lemon" or not</nowiki>)

The purchaser of a new car soon finds out whether or not his car is a lemon but, importantly, he is the only one who knows this. 

Someone in the market for a used car knows that the market is comprised of both lemons and non-lemons. Knowing this, the used car purchaser seeks to pay no more than a weighted average of the price they'd pay for a lemon and the price they'd pay for a non-lemon using their best estimate of the populations for each. 

Let:
''q''<sub>''L''</sub>=the estimated population of lemons 
''p''<sub>''L''</sub>=price willing to pay for a lemon 
''p''<sub>''NL'</sub>=price willing to pay for non-lemon

==Tipping==