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> More information in the system = greater efficiency. More information does not always increase market efficiency. In fact, it can have just the opposite effe

by freyir 9y ago

> More information in the system = greater efficiency. More information does not always increase market efficiency. In fact, it can have just the opposite effect when there is information asymmetry. https://en.wikipedia.org/wiki/Information_asymmetry https://en.wikipedia.org/wiki/Information_asymmetry http://www.economicsonline.co.uk/Market_failures/Information_failure.html http://www.economicsonline.co.uk/Market_failures/Information...

AndrewKemendo 9y ago
For sure, but only in the short term. History shows that there is a push and pull here and that on aggregate more information is being input to the market from all sides and available for price discrimination. Inefficiencies are great for enterprises to attempt to capture, and by doing so exposing the inefficiency.