Democracy is a form of government in which political decisions are ultimately governed by the bulk of the adult population, though, of course, usuall… - Kenneth Arrow

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Democracy is a form of government in which political decisions are ultimately governed by the bulk of the adult population, though, of course, usually indirectly through election of representatives. It is fair to say that political liberties, freedom of speech and of the press, are so closely inherent in meaningful democracy as to constitute part of the definition. But one can perfectly well imagine democracy without freedom of religion or in a society where every move is reported and internal passports are needed. Whether or not these restrictions are incompatible with the persistence of democracy is a contingent question, not a tautologous consequence of a definition.

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About Kenneth Arrow

Kenneth Joseph Arrow (August 23, 1921 – February 21, 2017) was an American economist, who was Professor Emeritus of Economics in Stanford, and joint winner of the Nobel Memorial Prize in Economics with John Hicks in 1972.

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Birth Name: Kenneth Joseph Arrow
Alternative Names: Kenneth J. Arrow Ken Arrow
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An organization is typically composed of changing individuals. Now any individual generally has access to many communication channels, of which this particular organization is only one. In particular, education is such a channel. Thus, the organization is getting the benefit of a considerable amount of information which is free to it.

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The economic value of information offers no great mysteries in itself. It is easy to prove that one can always do better, whether as a producer or as a consumer, by basing decisions on a signal, provided the signal and the economic variables are not independently distributed. But this remark has an implication for economic decisions; the economic agent is willing to pay for information, for signals.

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