In economics, perfect information is a feature of perfect competition. With perfect information in a market, all consumers and producers are assumed to have perfect knowledge of price, utility, quality and production methods of products, when theorizing the systems of free markets, and effects of financial policies.
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In economics and game theory, complete information is a term used to describe an economic situation or game in which knowledge about other market participants or players is available to all participants. The utility functions, payoffs, strategies and "types" of players are thus common knowledge.
Inversely, in a game with incomplete information, players may not possess full information about their opponents. Some players may possess private information that the others should take into account when forming expectations about how a player would behave. A typical example is an auction: each player knows his own utility function (= valuation for the item), but does not know the utility function of the other players.
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This implies the defining feature of a free market is perfect information. Voting is also a type of market, as such, perfect information should be the defining feature of fully democratic participation. In real life, there is no such thing as perfect information... but we can strive for much better transparency.
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