"lemons" Market: The Symmetry Of Information And Consumer Behavior

China's markets for"lemons"can't be explained by conclusions of Akerlof (1970) and other studies. The existence of symmetric information and consumers'consequent purchase behavior are the key factors,which attract poor research attentions. So this study has investigated how the information being symmetric in China's"lemon markets", and researched corresponding consume behavior, aiming to explain the sustaining prevalence of"fake and inferior goods"in China.Theoretical and positive research and qualitative and quantitative analysis were used as the basic methods. Initially, we studied research papers on"lemons"to set background and theory foundation for whole paper, after which the case of China's rural bazaar were investigated to reveal how symmetric information was achieves in"lemon market". Then the Quality Choice Model was established in order to explain consumers'voluntary purchase behavior. At last, deduction of the model was tested by dates. A number of facts were uncovered by this research:1.Symmetric information in China's"lemon market"does exist, ensured by the Information Feedback Mechanism.2.Poor income results in the choices of the"lemons"with symmetric information.3.As the statistic results showing, the ratio of fake and inferior goods is higher when the income distribution is more unfair and the average income is less.