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. Ignorance does not mean systematic bias. To be uninformed about a policy does not imply that voters have biased estimates of its effects.
Voters can discount, or simply ignore, information from biased or questionable sources.
Consumers and investors are also rationally ignorant about a great deal, but they know enough for markets to work well. Similarly, voters know enough for democracy to work well. G. Moreover, the Principal of Aggregation assures good outcomes even in the worst case scenario. To reach their standard conclusions about political failure, then, ignorance is not enough. First , reputation matters.