Investors need to know what government policy will do in order to pick stocks. When they go to vote, they can easily rely on information they acquired for quite different reasons. People often just take information as it arrives, adjust their conclusion, and then forget the information, but remember the conclusion . Thus, written tests of political knowledge don't prove much. D. Second , informed judgments can be made with little information .
Voters can simply ask their preferred experts for information.
Just as I don't need to know anything about heart surgery to get a first-rate bypass operation, I don't need to know anything about current gun control proposals to vote intelligently about gun control. Analogy between stock markets and elections. Stock markets reflect information well even though most investors are highly ignorant. E. Third , the deleterious effect of biased information has been overstated. Even if people are highly ignorant, their random errors will cancel out.