Perfect information a la Walras versus perfect information a la Marshall

Michel De Vroey

Journal of Economic Methodology, 2003, vol. 10, issue 4, 465-492

Abstract: In this paper I ponder upon the meaning of the perfect information assumption, and argue that a distinction should be drawn between the Walrasian and Marshallian conceptions of perfect information. I show that the Marshallian conception is more demanding than the Walrasian, due to the absence of the auctioneer figure. Next, I examine a few modern imperfect information models (Friedman's expectations-augmented Phillips Curve model, Lucas' neutrality of money model, Shapiro and Stiglitz' efficiency wage model) in order to assess whether the perfect information conception they depart from is the Walrasian or the Marshallian. The finding is that the first and the third are Marshallian while the second is Walrasian. Finally, I reflect on how models of general equilibrium with imperfect competition fare with respect to the Marshall-Walras divide.

Keywords: perfect information; imperfect information; Marshallian theory; Walrasian theory (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (10)

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DOI: 10.1080/1350178032000130466

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