A critical survey of J. K. Arrow'S theory of knowledge

In my critical review of Arrow's theory of information, I show that despite its great achievements, this theory lacks the tacit, institutionalized, unexpected and non-rational dimensions of knowledge. The organizational or corporate culture cannot be derived from market failure or market imperfection. It is the direct outcome of internal organization of firm and other social networks, and thus closely related to learned and transmitted knowledge in a group context. Hence knowledge does not simply reflect the limits of market (as suggested by Arrow, 1974), and the presence of parametrical uncertainty, it implies the power of organization and networks in the face of radical uncertainty.