Perfect information - Revision history

Pestergaines: /* Links */ +res

2013-04-24T21:42:54Z

Links: +res

← Older revision		Revision as of 21:42, 24 April 2013
Line 20:		Line 20:
	* [http://mises.org/mofase/ch5.asp The Methodology of the Austrian School Economists] by Lawrence H. White		* [http://mises.org/mofase/ch5.asp The Methodology of the Austrian School Economists] by Lawrence H. White
	* [http://www.econlib.org/library/Enc/Information.html Information] by Joseph E. Stiglitz at The Concise Encyclopedia of Economics		* [http://www.econlib.org/library/Enc/Information.html Information] by Joseph E. Stiglitz at The Concise Encyclopedia of Economics
			* {{md\|5444\|The Implications of an Imperfect World\|Jonathan M. Finegold Catalan\|July 2011}}
	* {{wplink}}		* {{wplink}}

	[[Category:Economic concepts]]		[[Category:Economic concepts]]
	{{Stub}}		{{Stub}}

Pestergaines: +resources

2011-11-27T10:55:40Z

+resources

← Older revision		Revision as of 10:55, 27 November 2011
Line 16:		Line 16:

	==Links==		==Links==
			* [http://mises.org/daily/801 Lemons and the Nobel Prize] by William L. Anderson, October 2001
			* [http://mises.org/daily/2289 The Economics of Groundhog Day] by D.W. MacKenzie, August 2006
			* [http://mises.org/mofase/ch5.asp The Methodology of the Austrian School Economists] by Lawrence H. White
			* [http://www.econlib.org/library/Enc/Information.html Information] by Joseph E. Stiglitz at The Concise Encyclopedia of Economics
	* {{wplink}}		* {{wplink}}

	[[Category:Economic concepts]]		[[Category:Economic concepts]]
	{{Stub}}		{{Stub}}

Pestergaines: Created initial stub.

2011-11-26T22:56:13Z

Created initial stub.

New page

In economics, a state of '''perfect information''' is assumed in some models of [[perfect competition]]. Perfect information practically means that all consumers know all things, about all products, at all times (including knowing the probabilistic outcome of all future events) , and therefore always make the best decision regarding purchase. In competitive markets, unlike game-theoretic models, perfect competition does not require that agents have complete knowledge about the actions of others; all relevant information is reflected in prices.{{Fact|Stolen def. from Wikipedia, could use a better one.}}

{{See also|Information}}

==Criticisms==
There are four fundamental reasons why [[information]] necessary for market decisions is "imperfect", two are related to the inherent nature of things, two are caused by competitive behavior, being endogenous to the [[Competition|competitive]] process:
* The information cannot be known at the time the decision to produce or to buy must be made (the ''temporal'' problem). Production, trade and consumption happen at different times.
* The information is not revealed by the good or the process (the ''revelation'' problem)
* The information is a private rival good that is developed and protected as property that is withheld (the ''property'' problem)
* Information can be and is made available to some selected players before others (the ''insider'' problem)

A general theory of economic behavior would be better to assume that all information is a [[good]], not a given, and all information must be acquired at a cost.<ref name="Mann_Antimarket">Roger Mann. [http://books.google.com/books?id=WFi7M-lZynYC&pg=PA32&dq=perfect+information&hl=en#v=onepage&q=perfect%20information&f=false "Antimarket economics: blind logic, better science, and the diversity of economic competition"] (''Google Books'' preview), Greenwood Publishing Group, 1996, p. 40-42. </ref>

==References==
{{Reflist}}

==Links==
* {{wplink}}

[[Category:Economic concepts]]
{{Stub}}