1.3.4 Information Gaps (Edexcel A-Level Economics Teaching PowerPoint)

This teaching PowerPoint covers Information Gaps in markets.

In a perfectly efficient market, all participants would have access to complete and accurate information, which would allow them to make rational decisions. However, in reality, this isn't the case. Even with the Internet, which has made information more accessible, there are still many factors that limit how much information consumers have. For example, they may not have the time or ability to process all of the information available to them, or they may not have access to the same information as others. This can lead to market inefficiencies and sub-optimal choices.