Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9727824 | Physica A: Statistical Mechanics and its Applications | 2005 | 33 Pages |
Abstract
We present a model for the supply-demand law with quality and limited information capability. We postulate that imperfect information permeates in almost all economic transactions to varying degrees. Through a simple model we outline a research agenda that re-examines many standard issues in economics. Our analysis shows that whereas imperfect information can be improved, it leads to new uncertainties so that the perfect information limit can never be reached. As a corollary neoclassical perfect equilibrium can never be attained.
Related Topics
Physical Sciences and Engineering
Mathematics
Mathematical Physics
Authors
Yi-Cheng Zhang,