2000/11/01 by Joseph E. Stiglitz · 3 citations
Economics, Econometrics and Finance · Decision Sciences · #Economic theories and models #Economic Policies and Impacts #Auction Theory and Applications
paper · doi:10.1162/003355300555015
openalex publication_date 2000/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/04
In the field of economics, perhaps the most important break with the past—one that leaves open huge areas for future work—lies in the economics of information. It is now recognized that information is imperfect, obtaining information can be costly, there are important asymmetries of information, and the extent of information asymmetries is affected by actions of firms and individuals. This recognition deeply affects the understanding of wisdom inherited from the past, such as the fundamental welfare theorem and some of the basic characterization of a market economy, and provides explanations of economic and social phenomena that otherwise would be hard to understand.