3 ms·
This statement seems odd to me: Second, information is corroding the market’s ability to form prices correctly. That is because markets are based on scarcity w
by valar_m 11y ago
This statement seems odd to me:
Second, information is corroding the market’s ability to form prices correctly. That is because markets are based on scarcity while information is abundant.
I don't understand how this follows. Wouldn't having more information mean that prices form more correctly?
- toomuchtodo 11y agoOnly if everyone has perfect information all of the time.
- altcognito 11y agoand the ability to interpret and rationally act on that information. (if rational action is what one wants)
- vegancap 11y agoHe doesn't explain how more information effects market scarcity, he's really just thrown that one out there with no explanation!
- ef4 11y agoYes. The author's statement is malformed. Lots of people get themselves into trouble pontificating on how the flow of information makes markets work or not work. What they often fail to notice is that there is also a market for information itself, and that it's not really necessary to special case "information" differently than any other necessary input.