2 Some complications that can occur with Structural Change

2.2 Imperfect Communication

Communication is often imperfect. It can be dependent upon its form as well as its content. It can be often passed along local and unpredictable paths. It can be limited by the time, capacity and attention of the communicants. Some economic models have assumed that communication is perfect, so that all participants have the same information at the same time (e.g. as theories of pricing in stock-markets). In situations where there is a lack of reliable and generally accessible information agents may well have to fall back on more imperfect local communication with those they know (or trade with). In situations of rapid structural change there will inevitably be less reliable information that in a comparable stable situation. Thus in such situations the effect of local and partial communication may be greater.

The Role of Expressiveness in Modelling Structural Change - Bruce Edmonds - 16 MAY 96

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