What is the difference between knowledge and information? I believe this distinction may have been made by Hayek or some other Austrian.
In this paper (pdf), Peter Boettke goes into great depth explaining the difference between the two concepts in the Austrian school.

Essentially information is any data that might influence an act (or specifically the perceived utility or cost of a choice), and knowledge is the information that the actor has already collected prior to the time they made their decision and/or engaged in their behavior.

This helps to explain seemingly irrational behavior that is merely a manifestation of imperfect or asymmetric information (though it doesn't necessarily preclude or eliminate irrationality by any means).

There is also some room for "false" (or conflicting) knowledge, to provide for further irrationality (in the sense that $A$ knows $U(x)&gt;U(y)$ and $B$ knows 
$U(y)&gt;U(x)$ where $U(x)$ is the average perceived utility of $x$ for all actors in the economy.

He of course does a much better job explaining it than I do.