Development in an incomplete information framework — the markets for physical and human capital from a fuzzy perspective

Asymmetric or incomplete information is a common and much discussed feature of market interactions, often constituting the difference between ´off the shelf´ policy prescriptions and the realities of the development process. Besides outlining the resulting imperfections in the markets for physical and human capital, this paper attempts to provide an introduction to the applicability of fuzzy set theory to these areas.