included an emerald that cost $14,500. Several years later, the emerald fractured. Lynn took it to another

jeweler who found that cracks in the emerald had been filled with an epoxy resin. Lynn sued the original

jeweler in 1997 for selling her a treated emerald without telling her, and won. The case publicized a number of

little-known facts about precious stones. Most emeralds have internal flaws, and so they are soaked in clear oil

or an epoxy resin to hide the flaws and make the color more deep and clear. Clear oil can leak out over time,

and epoxy resin can discolor with age or heat. However, using clear oil or epoxy to “fill” emeralds is completely

Access for free at openstax.org
16.1 • The Problem of Imperfect Information and Asymmetric Information 389

legal, as long as it is disclosed.

After Doree Lynn’s lawsuit, the NBC news show “Dateline” bought emeralds at four prominent jewelry stores in
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