[ [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.