How can the idea of Akerlof's 'lemons' be applied to goods and services markets (that doesn't include second-hand cars)?
Health insurance. If an insurance company must charge a single premium because they cannot distinguish between low risk and high risk individuals, they will charge a premium based on average risk. As a result the proportion of high risk individuals in the pool of insured individuals increases, whilst the proportion of low risk individuals decreases (healthy individuals are less willing to pay a high price of insurance), which pushes up the average price of premiums, further reduces the proportion of low risk individuals, etc. The market fails.