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Free markets are stochastic Nash-equilibrium-seeking optimization processes. By which metric do they "not work"? It's not as if governments are any better at re
by wyager 11y ago
Free markets are stochastic Nash-equilibrium-seeking optimization processes. By which metric do they "not work"? It's not as if governments are any better at reaching Pareto optima.
- personjerry 11y agoCould an argument be made that a government could [at least attempt to] enforce some socially more optimal solution?
- msellout 11y agoGeographic regulation is unnecessary, but the government may decide it is responsible for lowering barriers to entry -- supporting a healthy financial market and streamlined licensing/inspection. Competitors entering the market will destabilize the two-firm Hotelling equilibrium.