By Philip Pilkington
Article of the Week from Fixing the Economists
Sympathetic Post-Keynesian types often ask me what I think of the whole ‘asymmetric information’ paradigm. They’re often struck when I say that I think that its vacuous. After all doesn’t this paradigm undermine the dreaded General Equilibrium theory? Well yes it does but that doesn’t mean that it is in any way substantive. You can’t just lend a paradigm credence because it produces results that overlap with your own.
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In his book Minding the Markets — about which I will be writing more posts the future — David Tuckett provides a very nice summary of George Akerlof’s famous ‘market for lemons’ paper. I actually