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.