There’s a very deep, important concept in economics that gets way too little attention from the public (and possibly from economists themselves). This is the idea of asymmetric information. The concept has been around for decades, and research about it has won Nobel prizes, but neither the profession nor the public has ever put it at the center of our understanding of markets. That should change.
When today we debate issues like financial regulation or high frequency trading, it helps to think about financial markets as being driven by differences in how much people know.
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