ABSTRACT
This chapter shows the process by which neoclassical economic theory became established as the 'mainstream' frame of reference by which economists would observe and interpret economic exchange. George Akerlof's article has been interpreted as providing mainstream economics with an account of information that is acceptable as supplementary to the neoclassical model. In money-bargaining, as in common theory, what is called a situation of 'asymmetric information' is the unsophisticated circumstances in which information relevant to a potential transaction is inaccessible, usually because an agent has an interest in withholding it. Information is disseminated by the agents of the bargaining system to form an information interface in which support-bargaining and money-bargaining are conducted. Joseph E. Stiglitz suggests that some markets, such as traditional commodity markets, are not so dependent on information, and consequently the idea of asymmetric information is much less relevant.
