The cannabis market doesn't match Akerlof's conditions. Due to the high rate of repeat business and relative ease of evaluating quality post-transaction, reputation functions as an effective public quality assurance mechanism.
Forced reliance on word-of-mouth advertising is very important as well in avoiding the market for lemons problem, but I don't think Akerlof considered that.
Forced reliance on word-of-mouth advertising is very important as well in avoiding the market for lemons problem, but I don't think Akerlof considered that.