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Research On How To Cope With The Information Failure

Posted on:2003-01-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:F H YingFull Text:PDF
GTID:1116360065456958Subject:Economic Law
Abstract/Summary:PDF Full Text Request
The market system is a decentralized decision-making system,the main body of the market has comprehensive decision-making power.Under this system, the main body such as governments at all levers often need to make various kinds of decisions.Information is a sort of resource, which forms the foundation of decision-making,therefore the main body must rely on information.However foil and effective information is not always available for decision-makers,lack of adequate and effective information is referred to information failure.The main body always face the problems of information failure under the market system.Therefore it is quite necessary to do some research on how to cope with this information failure.The purpose of my paper is to find the solution to the problem at lowest cost.The problem of information failure needs settling by institutions, but information also has impact on the formation and implement of institutions,on the basis of which is my research. According to the above-metioned structure of logic,my paper can be devided into three parts.Part 1 expatiates mostly on the concept and harm of the information failure and finds a way to overcome it.Part 2 is composed of chapter 2 -chapter 6,mostly studying how institutions have effects on the information, which is principal part of my paper. In this part,chpater 2 is about how to overcome the problem of uncomplete information.Chpater 3 is about how to overcome the problem of asymmetry of information.Chpater 4 is about how to tackle the problem of misleading information.Chpater 5 is on how institutions reduce the information cost,although it can be seen in other chapters unsystematicly,it is so important that my paper is derated to some special research on the obstacle and path of the cost-decreasing.Chapter 6 is about the disclosure of the public power information, it is essentially a kind of institution which the problem of asymmetry of information is overcome,but it is different from compulsory disclosure of private information in many aspects,so it is also necessary to do some special research.Part 3 is about my opinion on the impact of information on the institutions.Chapter 1 generally summarizes the problems of the information failure and it's sertlement,analyses the harm of the information failure,and points out the failure not noly increases the safety cost and information cost,but also leads to wrong decision-making;moral hazard will lead to the low efficiency of the market,the relation transaction will divide the market into many parts artificially,adverse selection will make the market die out.The economic man in the market who pursues to maximize his self-interest will make the harm of the information failure more serious,so we need institutions for help, economic law has particular advantages, which is most important and principal one in all kinds of institutions.Chapter 2 points out that the main functions of the law on the planning under socialism market system is only to provide public information,it is not a means of direct resource-collocating,but a means of optimizing it.Private informationproduction and transaction supported by governments is helpful to prompt provision of information which is needed by decision-makers.Chapter 3 is the most important and creative content in my paper.The paper divides the institutions into two parts,namely,direct institutions and indirect institutions.The former realizes functions mostly by increasing the information provided, free of charge by the person possessing predominant information,or by the governments,or the third party,or the other operator in the same industry.The latter realizes functions mainly by decreasing the demand for the information or by changing the form of the information.Since bad institution may produce more asymmetry of information,we should make better institution change in order to avoid the unnecessary asymmetry.Chapter 4 analyses the cause of the worng information firstly,secondly expatiate on four paths to reduce the wrong information.It is necessary to pr...
Keywords/Search Tags:Information
PDF Full Text Request
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