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Not a free market if there is information assymetry, it's there in the first paragraph: https://en.wikipedia.org/wiki/Free_market https://en.wikipedia.org/wiki
by narag 10y ago
Not a free market if there is information assymetry, it's there in the first paragraph:
https://en.wikipedia.org/wiki/Free_market https://en.wikipedia.org/wiki/Free_market
It says that there is a less assuming version, but I'd always heard the information thing.
- makomk 10y agoSince there is inevitably going to be information asymmetry, this is rather a "no true scotsman" approach to redirecting blame away for the problems that plague free markets in the real world.
- scrollaway 10y ago"I support our free market! But since our free market isn't really a free market, I'm still right and it's not my fault if things go wrong!"
- maze-le 10y agoWell, if that is the case, the free market is a pureley theoretical concept, that is not realized anywhere in the world. And it cannot be realized, because there is always inevitable some form of information assymetry.
- baq 10y agoeconomics 101 right here. free market is a theoretical model.
- coldpie 10y agoYes, precisely. Which is why you should immediately dismiss any politician masturbating about government interference in the "free market." Their premise starts in fantasy land and only gets worse from there.
- narag 10y agoSomething can be a theoretical concept and still useful. For politics you might want to favour transparency instead of obscurity. As an employee in software I've been working through intermediaries for a good part of my career, so obviously interested. I suspect that, at least in my country, it's more a matter of bad regulation than of information assymetry. But the mere fact that we're not sure which are the causes is in itself information assymetry.