The Used Cart

A farmer wanted to sell his cart. He knew every creak, every loose board, every weakness. The buyer knew only what he could see in an hour’s inspection.

The farmer knew the cart was worth fifty coins. The buyer, uncertain, offered thirty — a discount for ignorance.

The farmer was insulted. “It’s worth fifty!” But the buyer had no way to verify this. Every seller said the same thing, whether the cart was worth fifty or five.

The good cart sold below value. The bad carts sold above. The gap between what the seller knew and what the buyer knew was the cost both paid.