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Ironica's Journal: On government regulation and lobbying 2

Journal by Ironica








On government regulation and lobbying

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  • Actually, it's government regulation that requires perfect information. When there's a single entity regulating the business of an entire society, that entity would need perfect information about all aspects of society in order to achieve the optimal regulation. This is what's known as the 'economic calculation' problem, and it's part of the reason centrally planned economies are weak ones.

    On the other hand, if property rights are respected, each individual is free to choose how best to utilize his own a

    • by Ironica (124657)

      Adam Smith is who said that perfect information was one of the three essential elements of the self-regulating free market. I didn't make it up. ;-)

      But I do agree with him. Without any regulation of the provision of information, actors in a free market are motivated to hide anything negative or make false statements that are positive about their product. If it is discovered that they are lying, well, then, that will ruin their reputation, right? Except... how do I find out that such-and-such company was
