Perfect information is a term used in economics and game theory to describe a state of complete knowledge about the actions of other players that is instantaneously updated as new information arises. Economics (deriving from the Greek words οίκω [okos], house, and νέμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ... Game theory is a branch of applied mathematics that uses models to study interactions with formalised incentive structures (games). It has applications in a variety of fields, including economics, international relations, evolutionary biology, political science, and military strategy. ...

Chess and yahtzee are perfect information games while prisoner's dilemma, where players move simultaneously, is not. Chess is a board game and mental sport for two players. ... Yahtzee is the trademarked name of a popular dice game made by Milton Bradley (now owned by Hasbro). ... Will the two prisoners cooperate to minimise total loss of liberty or will one of them, trusting the other to cooperate, betray him so as to go free? The prisoners dilemma is a type of non-zero-sum game (game in the sense of Game Theory). ...

In economics, a state of perfect information is required for a completely free market to function. That is, assuming that all actors are rational and have perfect information, they will choose the best products, and the market will reward those who make the best products with higher sales. Perfect information would practically mean that all consumers know all things about all products, and therefore always make the best decision regarding purchase. In philosophy, the word rationality has been used to describe numerous religious and philosophical theories, especially those concerned with truth, reason, and knowledge. ...

We know that perfect information does not exist (and cannot totally exist). The results are evident in advertising, which serves the role of allowing producers to increase the amount of available information by providing consumers with more information about their products as well as allowing producers to use a lack of perfect information to counter product deficiencies by way of advertisement. In theory, the more information that exists about products, the more "free" a market is. Generally speaking, advertising is the paid promotion of goods, services, companies and ideas by an identified sponsor. ... In the entertainment industry, a producer is generally in charge of, or helps to coordinate, the financial, legal, administrative, technological, and artistic aspects of a production. ... In economics, consumers are individuals or households that consume goods and services generated within the economy. ...

See also

• Complete information
• Extensive form game