Dispersed knowledge

In economics, dispersed knowledge is information that is dispersed throughout the marketplace, and is not in the hands of any single agent. All agents in the market have imperfect knowledge; however, they all have a good indicator of everyone else's knowledge and intentions, and that is the price.

The price indicates information that the player does not know, and by deciding to buy, sell or abstain at that price it also gives the player a chance to bring their knowledge to bear and reflect itself in the price. Most of the knowledge, however, is tacit knowledge and people usually are not fully aware of the knowledge that they are sharing via price signals, nor do they fully perceive the knowledge that they use when they make a price decision.

When a buyer goes to market, the prices he or she finds therein for products and services have been set by the complex calculus that is the sum total of the tacit knowledge residing within the market. Price signals are one possible solution to the economic calculation problem. This viewpoint is popular especially among Austrian School economists such as Friedrich Hayek.

This economic term article is a stub. You can help Wikipedia by expanding it.v · Categories: Austrian School Economics terminology Economic term stubs Wikimedia Foundation. 2010. Игры ⚽ Поможем сделать НИР Coat of arms of Sweden PPCC Look at other dictionaries: Dispersed — Disperse Dis*perse , v. t. [imp. & p. p. {Dispersed}; p. pr. & vb. n. {Dispersing}.] [L. dispersus, p. p. of dispergere to strew, scatter. See {Sparse}.] 1. To scatter abroad; to drive to different parts; to distribute; to diffuse; to spread; as …   The Collaborative International Dictionary of English Tacit knowledge — The concept of tacit knowing comes from scientist and philosopher Michael Polanyi. It is important to understand that he wrote about a process (hence tacit knowing) and not a form of . However, his phrase has been taken up to name a form of… …   Wikipedia Distributed knowledge — is a term used in multi agent system research that refers to all the knowledge that a community of agents possesses and might apply in solving a problem. Distributed knowledge is approximately what a wise man knows or what someone who has… …   Wikipedia Public sector knowledge management — The British Standards Institution s view of the distinctiveness of public sector knowledge managementBritish Standards (BSI) [http://www.bsi global.com] is the National Standards Body of the UK responsible for facilitating, drafting, publishing… …   Wikipedia Hayek, F.A. — ▪ British economist Introduction also called  Friedrich A. Hayek , in full  Friedrich August von Hayek  born May 8, 1899, Vienna, Austria died March 23, 1992, Freiburg, Germany       Austrian born British economist noted for his criticisms of the …   Universalium Friedrich Hayek — Infobox Philosopher region = Western Philosophy era = 20th century philosophy color = #B0C4DE name = Friedrich August von Hayek birth = birth date|1899|5|8 Vienna, Austria Hungary death = death date and age|1992|3|23|1899|5|8 Freiburg, Germany… …   Wikipedia Economic calculation problem — The economic calculation problem is a criticism of socialist economics. It was first proposed by Ludwig von Mises in 1920 and later expounded by Friedrich Hayek.cite book title= Economic calculation in the Socialist Commonwealth accessdate=2008… …   Wikipedia Max Weber — Max Weber …   Wikipedia C. P. Ramanujam — Born 9 January 1938 Madras,  India Died …   Wikipedia Charles G. Koch — Born November 1, 1935 (1935 11 01) (age 76) Nationality American Ethnicity Dutch (grandfather) …   Wikipedia 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”