Overview
Information is a critical element of economics that is often overlooked. This is because that most models assume that information is free and readily available to all market participants. (see market inefficiency)
However, information is an important area of economics for the following reasons.
- Information is generally not free and readily available, as assumed, and violations of this assumption can have an impact on market inefficiency
- Because it is not free, there is a market for information as a product in itself
- The information set available to decision makers can have an impact on their ability to even make a decision. (see decision making and decision traps and decision paralysis )