Originally Posted by
kfahmi
One crucial thing missing from classical economic theory is that it assumes all players have perfect information, and that is most certainly not the case.....
Plus, classical economic theory also assumes all actors are purely rational, which is far from the case.
True, and therefore individuals are likely to make some "bad" decisions, but they won't all make the
same bad decisions. As I recall, the theory holds that, for very large groups and over time, the net behavior tends to appear informed and rational, something like the physics of subatomic particles. What an individual person or particle will do (or "should" do) is unknown.
