The influence the Information-processing styles on money illusion in the presence of abundant information: An experimental analysis

  • Alexander Neverov
Cite this:
Alexander Neverov. (2020). The influence the Information-processing styles on money illusion in the presence of abundant information: An experimental analysis. Journal of Business Management and Economics, 8(10), 01–05. https://doi.org/10.15520/jbme.v8i10.3124
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Abstract

Information processing is an important topic in theoretical and experimental economics. In theoretical economics, especially in Austrian economics school (L. Mises, F. Hayek, I. Kirzner), was shown that only market prices provided aggregation of information. In the new-austrian theory of entrepreneurship difference between the information-processing styles is postulated as the main source of profit and innovations (Kirzner, 1973, 1997).Radner (1979) shows that if tradersholdheterogeneousprivateinformationthepricesconvergetoanequilibrium as if each trader openly and truthfully communicates his own private information. “It remains an open question, therefore, whether market prices are able to fully revealthetruestateevenwhentradersholdidenticalorhomogeneouspartialprivate information,inthesensethatitinducesthesamebeliefsoverassetvaluations”.

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