Economics Dictionary of Arguments
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Information, information theory: A character or a character combination contains information
when it is clear to the recipient that this character or the character combination appears instead of
another possible character or a possible character combination. The supply of possible characters
determines to a part the probability of the occurrence of a character from this supply. In addition,
the expected probability of the appearance of a character can be increased by already experienced
experiences of regularities. The amount of information transmitted by a character depends on the
improbability of the occurrence of the character.
_____________
Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of
problems related to them. Instead, they are intended to give a short introduction to the contributions below. –
Lexicon of Arguments.
Author
Item
Summary
Sunstein I 14
Information/prices/markets/Hayek/Sunstein: a pricing
system, as suggested by Friedrich August von Hayek,
can help in solving the problem of how (implicit)
pressure is exerted in group discussions to withhold
potentially crucial information. This has a pronounced
effect on the gathering of information.
Markets/Hayek: Markets create prices for goods in a
> Hayek,
>
way that processes scattered information distributed
Friedrich
Information among very different people. In markets, participants
A. von
have an extreme incentive to be right. Some
information may remain "hidden", but when it comes
to making a profit, this information will not be hidden
for customers and investors for long. For this reason,
market prices reflect a high degree of information. (Cf.
(1))
Sunstein: You could say that markets create
something like a "Daily Us": (See Filter
Meta data
Hayek I
Friedrich A.
Hayek
The Road to
Serfdom: Text
and
Documents-The Definitive
Edition (The
Collected Works
of F. A. Hayek,
Volume 2)
Chicago 2007
Sunstein I
Economics Dictionary of Arguments
Search
Information, information theory: A character or a character combination contains information
when it is clear to the recipient that this character or the character combination appears instead of
another possible character or a possible character combination. The supply of possible characters
determines to a part the probability of the occurrence of a character from this supply. In addition,
the expected probability of the appearance of a character can be increased by already experienced
experiences of regularities. The amount of information transmitted by a character depends on the
improbability of the occurrence of the character.
_____________
Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of
problems related to them. Instead, they are intended to give a short introduction to the contributions below. –
Lexicon of Arguments.
Author
Item
Summary
Meta data
bubbles/Sunstein).
Cass R.
SunsteinVsHayek: However, his argumentation had a Sunstein
blind spot. Markets can also process false information. Infotopia: How
Styles can lead to inflationary prices. This can also
Many Minds
affect land and real estate prices. (See
Produce
Markets/Sunstein, Markets/Hayek).
Knowledge
I 132
Oxford 2008
Prediction markets/forecast markets/Sunstein:
Examples where information markets are efficient: For
example, to recognize tendencies of air pollution, to
observe deficits in public budgets (2). For example,
tracking outbreaks of diseases and predicting their
spread or monitoring the solvency of institutions. (3)
I 137
Manipulation: Candidate Pat Buchanan's supporters
bought large quantities of shares in the IEM (Iowa
Electronic Market, a prediction market for elections) in
2000 to manipulate the prediction. However, better
informed investors subsequently took advantage of
Sunstein II
Cass R.
Sunstein
#Republic:
Divided
Democracy in
the Age of
Social Media
Princeton 2017
Economics Dictionary of Arguments
Search
Information, information theory: A character or a character combination contains information
when it is clear to the recipient that this character or the character combination appears instead of
another possible character or a possible character combination. The supply of possible characters
determines to a part the probability of the occurrence of a character from this supply. In addition,
the expected probability of the appearance of a character can be increased by already experienced
experiences of regularities. The amount of information transmitted by a character depends on the
improbability of the occurrence of the character.
_____________
Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of
problems related to them. Instead, they are intended to give a short introduction to the contributions below. –
Lexicon of Arguments.
Author
Item
Summary
this.
1. Friedrich Hayek, Law, Legislation, and Liberty, vol.
1: Rules and Order (Chicago: University of Chicago
Press, 1973) p. 13.
2. See Abramowicz, “Prediction Markets,
Administrative Decisionmaking, and Predictive CostBenefit Analysis,” pp. 990–92.
3. ibid. pp. 987-90.
_____________
Explanation of symbols: Roman numerals indicate the source,
arabic numerals indicate the page number. The corresponding
books are indicated on the right hand side. ((s)…): Comment by
the sender of the contribution.
The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition
from the Dictionary of Arguments. If a German edition is specified,
the page numbers refer to this edition.
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> Counter arguments against Hayek
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