← All parts of this equation

Equation 17 · Part 8 · When Generation Becomes Free, Attention Becomes the Scarce Good

superscript

p∗  =  E[ v(q)  ∣  c(q)≤p∗ ],p^{*} \;=\; \mathbb{E}\big[\, v(q) \;\big|\; c(q) \le p^{*} \,\big],
superscript

What this part means

A raised number can be a power. When it is a label or bound, it selects a case or the upper limit of a sum; the formula’s structure distinguishes these uses.

Its job in the formula

A raised mark can be a power or an index. Its position and the surrounding notation determine which.

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 p∗  =  E[ v(q)  ∣  c(q)≤p∗ ]p^{*} \;=\; \mathbb{E}\big[\, v(q) \;\big|\; c(q) \le p^{*} \,\big]. 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 ] .

Read this part in the article →

Learn the underlying idea

An exponent tells how a base is used in multiplication. In x³, x is the base and 3 is the exponent: x³ = x × x × x.

Open the illustrated exponents: repeated multiplication and powers guide →

Sources cited in the surrounding passage

These citations provide research context; check each source for the exact claim it supports.