MUST SELL

Why are moving sales a successful and widespread phenomenon? How can i t be optimal for a seller to disclose her low valuation for the item t o be sold? We propose an explanation based on the ''lemons problem'' i n bargaining with asymmetric information about quality. Disclosing a l ow valuation signals that there are significant gains from trade, so t hat trade takes place when it wouldn't otherwise, and all agents are m ade better off.