What do we mean by imperfect information?

Question

What do we mean by imperfect information?

Answer 1

imperfect information means that consumers do not have perfect information on the prices and quality of the product. For example, if consumers do not have perfect information on the quality of the product, they may buy the wrong product or the wrong brand. They might even favour buying from one seller eg. walmart instead of the other sellers. The result is that they buy way too much of some items and not enough of others.

Answer 2

A sequential game is one of imperfect information if a player does not know exactly what actions other players took up to that point. Technically, there exists at least one information set with more than one node. If every information set contains exactly one node, the game is one of perfect information. Intuitively, if it is my turn to move, I may not know what every other player has done up to now. Therefore, I have to infer from their likely actions and from *Bayes rule which actions likely led to my current decision.

*(Eighteenth century British mathematician who established a technique for probabilistic mathematical inference. His Bayes Theorem, published posthumously, treats probability as a logic. His "professional" life was as an ordained minister outside of London.

Answer 3

imperfect information is a term used typically when we have come to a decision without all the facts available.  For example, if I told you that "Bob" was found in the house with a dead body, had blood on his shirt and a knife near him, you might well come to the conclusion that Bob killed someone.  

Your information however is imperfect.  What I didn't tell you was that Bob was a mortician and he cut his hand in the kitchen while making lunch.

Answer 4

The information was wrong.