[ [home] ](/) 1. Markets can only be efficient with perfect information, but perfect information is impossible in practice. 2. Markets can only be efficient when participants have complete freedom to make decisions, but this freedom is always constrained by real-world limitations. 3. Therefore: Truly efficient markets don't exist. 4. To survive in these inefficient markets, companies create boundaries that generate externalities to: - Offload complexity to external systems, simplifying their decision-making process - Create an illusion of growth by leveraging information gaps in the market 5. The society absorb these externalities, creating a feedback loop that reinforces the inefficiency of the market.