----------------- HES POSTING ----------------- 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 ---------------------------------------------- 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 e-mail: [log in to unmask] URL: http://www.augustana.ab.ca/~emmer/ ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]