Information Asymmetry

Every one in the world is a mortal(and that means not immortal), and therefore does not share in God's all-knowing omnipotence. When i talk about information here, I mean information in general, like knowledge, like in the IT sense.

When one thinks carefully about it, information asymmetry appears to be the root to many things in the world, market failure, uncertainty of the future, chaotic theory, etc etc, the list goes on, if you willing to hear.

It is not enough to have complete information, because it is also necessary to to have the information to process that informantion. I think this what part of science should be dedicated to, how to understand understanding. Because knowledge in science in progressing way faster than the knowledge on how humans can use it effectively, technology in science are creating much grief in the society. The double edged sword, some term it. It wouldnt be a double edged sword if we knew how to remove the other edge.

Information asymmetry has its workings in game theory, and markets. One of the assumptions of perfect market competition is perfect information. But obviously this never occurs. Even if it occurs, the cost of obtaining the information is so high that many never bother finding out. Which is why people vote for politicians without really knowing who they are, their true personality, their shortcomings, etc. Even though game theory and economy tries to get around this information asymmetry by using rational logic analysis, we are unable to to achieve 100% prediction accuracy, primarily because there is myriad of ways of reasoning, and we cannot hope to understand all of them, or even to get hold of all of them.

Information asymmetry also occurs in physics. In trying to analyse a box of air molecules numbering trillions of billions, it is not possible to analyse the Newtonian motion for all of the individual molecules, because we simply do not have the means to process the amount of information. Instead we settle for the next best alterntive: by means of statistics and probability.

Information asymmetry is only inherent in the laws of nature. Godel's Incompleteness Theorem is a good example of no matter how much our current mathematical systems try, you cannot answer all questions, and question all the truths, without having to add more assumptions on top of the system. In physics, quantum mechanics provide the example of the Heisernberg Uncertainty Principle. Which says if you want to know a certain variable precisely, you must be prepared to forgo the precision of another related variable.

Perhaps one can define time's arrow using gain of information as a benchmark. The more information you have, the more 'time' units have moved on. Oh, I forgot, information is related to entropy. To possess information is to have an increase in entropy. Hmm..perhaps we are limited by how much total entropy that the universe can have?