Dispersed Knowledge

Dispersed Knowledge

Dispersed Knowledge

[caption id="attachment_538" align="aligncenter" width="500"]Dispersed Knowledge - The Daily Concept Dispersed Knowledge - The Daily Concept[/caption]

The concept of dispersed knowledge in economics states that no agent has information to all the factors that influence prices and production throughout the system. In other words, no one has a complete image over everything that is going on at a given time in economy.

One of the first economists to write about this concept, Friedrich Hayek claimed that "dispersed knowledge is essentially dispersed, and cannot possibly be gathered together and conveyed to an authority charged with the task of deliberately creating order".

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