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The question of perfect knowledge is a wonderful it litmus test for  
economists.  For the Austrians, the absence of perfect knowledge  
constitutes prove that the Hayekian process of discovery is the  
best way of organizing information.  However, I don't know how the  
Austrians handle the investment in long-lived capital goods.  What  
sort of private information does business have to allow it to make  
the right decisions?   
 
Marshall has it both ways.  He realistically dismisses the idea of  
perfect knowledge then sets economics off on the course of  
formalization, which requires perfect knowledge.   
 
For those economists who do not follow the Austrians path, what  
sort of optimality can they claim for the market in the absence of  
perfect knowledge? 
 
Michael Perelman 
California State University, Chico 
 
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Ross B. Emmett 
John P. Tandberg Associate Professor of Economics 
Manager, Electronic Information, History of Economics Society 
Augustana University College 
Camrose, Alberta CANADA   T4V 2R3 
voice: (780) 679-1517      fax: (780) 679-1129 
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