Yesterday I suggested that there is a lack of economic explanations
about what causes uncertainty and differentiate people's taste. Today I want to
further discuss what cannot be explained by economics.
Many economic models and theories assume perfect information;
however, in reality, we literally cannot prove that we are able to have perfect
information. In economics, imperfect information is often used as supportive
argument; of course, there are some economic frameworks about imperfect
information. However, these economic frameworks cannot fully describe the
complexity of imperfect information in reality. Economics in general refers
imperfect information as a systematic problem or an issue that can be solved by
technological innovation. However, in my opinion, information is a form of
resources or goods. They could have similar characteristics as public goods,
but they do have a special property. Information has a upper barrier of
consumption that individuals (including companies) cannot consume information
beyond their abilities.
Economics does not combine the abilities of individuals to consume
information with other theories which requires information conditions.
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