Wednesday, September 19, 2012

The market for lemons/law schools

One of the premises of advertising regulation is that law is one necessary weapon against the pollution of the information environment, a pollution that seriously harms the sellers who have truthful claims to make but whose claims buyers should rationally disbelieve in the absence of any credible means of sorting the high performers from the lemons.  Brian Tamanaha makes the argument that the dismissals of the false advertising claims against various law schools put us into just this market for lemons: the judges are saying that potential students shouldn't believe law schools' claims.

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