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A while back I read an article using Groundhog Day as an example how we can never have perfect information in an economic system. "The movie Groundhog Day (199
by debt 13y ago
A while back I read an article using Groundhog Day as an example how we can never have perfect information in an economic system.
"The movie Groundhog Day (1993) illustrates the importance of the Mises-Hayek paradigm as an alternative to equilibrium economics by illustrating the unreal nature of equilibrium theorizing."
http://archive.mises.org/5546/the-economics-of-groundhog-day/ http://archive.mises.org/5546/the-economics-of-groundhog-day...
- vanderZwan 13y ago> The ability of this fictional character to relive a single day points to vital issues in economics. Perfectly competitive equilibrium requires perfect information. Ignorance leads to errors that put the ideal state of equilibrium out of reach. Ignorance and error exist due to perpetual change. In a world where everything stays the same — except our knowledge of previous days — we can approach perfection. And it makes sense too! I mean, I already knew that practically every religion out there somehow manages to turn it into an example of teaching X or scripture Y, but if even economists can relate it to their field you know you have something special.