Introduction

Abstract

Economics is about the role of information in resource allocation. All economic problems are reducible to problems in information. In the absence of information problems there is no economic problem. In this book we discuss some implications of the above statements and attempt to justify them. It is, admittedly, an unusual way of defining economics but one which it is felt may help illuminate fundamental issues. The hard shell of mainstream theory conceals a soft yolk in the form of information problems. The inability of conventional theory to come to terms with empirical reality has been reinforced by the orientation of much economic theorising as intellectual games¹ rather than as attempts to extend our understanding of the way the world works. Here, we are concerned with the sterility of mainstream theory and with a possible alternative to it.

‘The adventures first’ said the Gryphon in an impatient tone, ‘Explanations take such a dreadful time’.

Lewis Carroll, Alice’s Adventures in Wonderland