Equation 17 · Part 3 · When Generation Becomes Free, Attention Becomes the Scarce Good
Symbol v
What this part means
the buyer’s value of quality q and c(q) the seller’s reservation value.
Its job in the formula
v is one factor in the product that computes the quantity on the left.
Full expression→Symbol v→Article meaning
Where the article explains it
where v(q) is the buyer’s value of quality q and c(q) the seller’s reservation value.
The passage around this formula
Akerlof supplied the canonical model of a market in that condition. Where sellers know quality and buyers do not, buyers can rationally offer only the expected value of what is on offer; sellers whose goods are worth more than that price withdraw; the expected quality of what remains falls; the price falls again. The equilibrium is a fixed point of the form . where v(q) is the buyer’s value of quality q and c(q) the seller’s reservation value. Only sellers whose reservation value lies below the prevailing price participate, and the price is the expectation over exactly that self-selected pool [ 2 ] .
Learn the underlying idea
A function assigns an output to each allowed input. The expression f(x) means “apply f to x”.
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Sources cited in the surrounding passage
These citations provide research context; check each source for the exact claim it supports.