
Perfect information, for you
non-Econ majors, is a state in which prices and quality of products
are assumed to be known to all consumers and producers.
Back in ancient times, when I studied economics, it was considered
a theoretical construct than a real-life scenario. The
closest example, pre-internet, was the airline industry, in which
travel agents could compare all fares on one system. The
success stories of near-perfect competition in air travel
differentiated themselves via service (Jet Blue) or efficiency
(Southwest).
Enter the mobile internet, and perfect information becomes
reality....
Read More »