# Grossman-Stiglitz Paradox A paradox introduced by Sanford J. Grossman and Joseph Stiglitz in a joint publication in American Economic Review in 1980. It argues perfectly informationally efficient markets are an impossibility since, if prices perfectly reflected available information, there is no profit to gathering information, in which case there would be little reason to trade and markets would eventually collapse. ## References - https://en.wikipedia.org/wiki/Grossman-Stiglitz_Paradox - Paper: http://www.dklevine.com/archive/refs41908.pdf