In 1967, George Akerlof, a first-year economics professor at the University of California, Berkeley, wrote a thirteen-page paper that used economic theory and a handful of equations to examine a corner of the commercial world where few economists had dared to tread: the used-car market. The first two academic journals where young Akerlof submitted his paper rejected it because they “did not publish papers on topics of such triviality.”1 The third journal also turned down Akerlof’s study, but on different grounds. Its reviewers didn’t say his analysis was trivial; they said it was mistaken.
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