In a meeting accutane diary blog 2. Information Inefficiency – In goods and securities markets, there is plenty of information available (most of it for free in terms of money) that can easily either be read or tested. So for example, all firms issuing securities (public) must put out regular financial statements, songs or games can be test played before purchase, houses can be checked by engineers, cars can be test driven. That, for the most part, does not apply to employees, especially in the services sector. Because it is just so hard to predict even whether Mr X will be successful in the new position or not, much less the degree of it. So a quick signal is simply what others have done – assuming they have acted rationally ( a big IF, but that’s another matter unrelated to this concept).