Watch out for the “lemon market”

The honourable financial merchant presupposes a functioning social order. Players in the financial market must invest in a common understanding of the game that is upstream of the rules.

Any market for trust goods can become a "lemon market" and thus, in the worst case, destroy itself. That is why trust is the most important resource for providers of high-quality products. In financial consulting, this requires the honourable financial merchant. This model only works under the premise of a social order that allows for it. This requires investments on the part of the players in the common understanding of the game that precedes the rules.

This study is available in German only.