Hacker News new | ask | show | jobs
by nsuser3 2714 days ago
> [...] Then they are only willing to pay a fixed price for a car that averages the value of a "peach" and "lemon" together (p_avg).

So every used car has the same price?

2 comments

No, because there are other factors than whether they are a ‘lemon’ or a ‘peach’. For example, age, mileage, brand value, warranty offered, convenience of purchase, etc. These don’t tell you whether the car is a lemon or a peach, although some can help you to guess it.

If you held all these other factors constant, then yes, all used cars would have the same price.

That’s what the Kelly Blue Book thinks