Prices and Knowledge: A Market-Process Perspective / Edition 1

by Esteban F. Thomsen

Overview

The growth of information economics has lead to a substantial re-consideration of the role of prices. Instead of the conventional neo-classical view of prices as straightforward indicators of scarcity, information economics emphasises that prices can be sources from which agents infer information and means by which they communicate. Prices and Knowledge analyses different theoretical approaches to the role of prices in situations of imperfect information. It shows that whilst the ‘informational efficiency' approach of Grossman and Stiglitz and the ‘bounded rationality theory' of Nelson and Simon are useful, neither goes far enough in considering situations of disequilibrium.

Product Details

ISBN-13:	9780415068659
Publisher:	Taylor & Francis
Publication date:	05/07/1992
Series:	Routledge Foundations of the Market Economy
Edition description:	ANN
Pages:	158
Product dimensions:	5.44(w) x 8.50(h) x (d)
Age Range:	18 Years

Table of Contents

Introduction 1. A Theory of the Market Process 2. Equilibrium Prices and Information 3. ‘Bounded Rationality' and the Price System 4. Change, Responsiveness and Coordination 5. Conclusions

Editorial Reviews

‘... a careful and admirably brief statement of the case for the market process approach to the theory of price.' - Economic Journal May 93

From the Publisher