[Borodog]

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As far as I understand it, an AC world rely on perfect information . . . Is this true?

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Of course not. Since such a thing does not and can not exist. Imperfect information merely represents arbitrage opportunities that allow the market to function.

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...and no barriers to entry for new companies.

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In what sense? In the sense that there is no government to erect artificial barriers to entry? Yes. In the sense that you still actually have to have the knowledge and capital to enter a market competitively? No. Obviously.

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I agree that the free market could take care of almost anything under these circumstances. But consumers never have perfect information.

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Don't worry about it. You're dealing with a strawman characterization of the theory. Perfect information is not necessary for the market to work, quite obviously, since markets exist and perfect information does not. The same is true of capital-free competitive entry; markets don't require such a ridiculous condition to exist for them to work. Again, quite obviously, since they do work and it doesn't exist.

I am truly mystefied by these bizarro objections to markets that always pop up. How exactly are these supposed to be points against the market and in favor of government? The information available to government central planners is infinitely MORE imperfect than the information available to individual market participants making individual decisions about their own lives and circumstances. A government's very EXISTENCE is by definition an exercise in erecting barriers to competitive entry in practically every industry.

Up is down, left is right, dogs are cats and destroying markets makes better markets, apparently.