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In this definition from Wikipedia, in the section on Microeconomics, it is claimed that perfect information is a physical impossibility. Can you help me unders
by jes 13y ago
In this definition from Wikipedia, in the section on Microeconomics, it is claimed that perfect information is a physical impossibility.
Can you help me understand why free markets "by definition" require that which cannot exist?
http://en.wikipedia.org/wiki/Perfect_information http://en.wikipedia.org/wiki/Perfect_information
- makomk 13y agoOh, that's easy - free markets are an ideal that can't actually exist in the real world, in part because perfect information is impossible.
- contingencies 13y agoMuch like democracy.
- tikhonj 13y agoThe same reason integrals require continuous functions, which also can't meaningfully exist: it's a mathematical model. Just because it can't possibly exist in the real world does not mean it's useless or even "wrong" per se.
- dragonwriter 13y ago> Can you help me understand why free markets "by definition" require that which cannot exist? Because, like "perfect information", "free markets" are an abstract conceptual ideal.
- dinkumthinkum 13y agoBy George I think he's got it!