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Which requires customers to have perfect knowledge of the market to work. How so? It’s precisely because no one has perfect knowledge that markets beat centra
by antidesitter 8y ago
Which requires customers to have perfect knowledge of the market to work.
How so?
It’s precisely because no one has perfect knowledge that markets beat central planning, as Hayek articulated in The Use of Knowledge in Society.
- jtmcmc 8y agowhen you have strong information asymmetry between purchaser and seller the market can become unsafe. These information asymmetries occur in highly specialized areas like...medicine where it is extremely difficult if not impossible for the consumer to be able to judge what is best. Which is why regulation is good and useful. It recognizes that we can not all be expert in all areas.