Ever buy a used car only to realize later that you’ve purchased a lemon? That scenario occurs because of information asymmetry between the seller — who knows the car is a lemon — and the buyer who doesn’t. Without transparency, the market assumed that any used car for sale is a lemon, so that drove down the price of good used cars. The good news is that thanks to the Internet, buyers now have access to data that can help them determine if a car is a lemon or a good buy.