----------------- HES POSTING ----------------- In response to remarks earlier by Tony Brewer and Patrick Gunning: As Hayek (& Wittgenstein) suggest, any model, mathematics, or statistical constuct assumes a _given_ known to the mind setting out the model or constuct -- a given which implies everything conceivable within the model. This holds true as much for the _givens_ in a model of so-called 'incomplete' information as it does for a 'perfect information' construct. Similarly, a _model_ of choice under so-called 'uncertainty' is made up out of _given_ elements -- given to the mind of the model constructor. Yet those who make choices and behave in the actual world live in worlds conceived in ways that are _not_ identically given alike to everyone -- i.e. each mind understands and interacts in the the world a bit differently. Additionally, and most importantly, minds are not restricted to a pre-given set of possibilities, but instead they are capable of open-ended discovery of things as yet unimagined, conceptually as well as in terms of the relations between things. Think, if you will, of as yet undiscovered scientific notions -- or new technologies. Think next of new entrepreneurial opportunities. This sort of point -- of the _non-modelableness_ of the real incompleteness of knowledge and the uncertainty of action is well made by Israel Kirzner, among others -- I believe Shackle & Popper & Hayek also had things to say on this matter. So the whole notion that literature of asymmetric information has broken free of the 'perfect knowledge' assumption is based on little more than a pun. Perfect knowledge in the sense of the perfect knowledge or "birds eye view" implied by a tractable mathematical model is still in the drivers seat in economics -- and the sort of personal, 'subjective', and local understanding of time & place of relevance to real choosing & behaving economics agents is still largely missing from the explanatory understanding of the trained economist. In this regard Pat Gunning's remarks -- and the quotation from Knight -- are right on target. Greg Ransom, MiraCosta College ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]