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Also, they become intellectual "defaults" such that any argument which does not assume their truth must be incorrect. They become self-referential, considered t

Also, they become intellectual "defaults" such that any argument which does not assume their truth must be incorrect. They become self-referential, considered true because people assume them to be true.

derefr 11y ago
Phrased more optimistically, they're axioms: assumptions underlying all the research, such that if you did change them, your own hypothesis wouldn't be able to lean on any of the existing research for support—because your hypothesis would exist in a different axiomatic universe from everything else. That's not to say you shouldn't; the axioms assumed in the model might not be the same ones that actually apply to our own universe. But frequently, the only thing that studies like economics care about is whether something is true or false in the model, rather than whether it's true or false in reality. In economics (and in many other disciplines) the model is an idealized universe we're interested in studying for its own sake, whether or not it is a perfect (or even close) description of reality. In other words: while we may never learn whether there can be such a thing as an efficient market on Earth, we will be able to know decisively whether there can be an efficient market in the nation of RationalActoria, a land-plate resting on a giant spherical cow. And knowing that can actually be helpful! Especially, the knowledge that something can't be true, even under those conditions, can frequently tell us a lot about whether it can happen in the real world. And that's the real concept to learn there, I think: that even a stupid, low-dimensional model that doesn't have much precision in reflecting the real world can very effectively answer real questions, especially questions about what can't happen—because if it can't happen in "ideal conditions", it certainly can't happen in real ones.
- freshhawk 11y ago
  That's well put, but clearly not the implied takeaway - given that they are interspersed with other items describing real world subtle human biases.

derefr 11y ago

Phrased more optimistically, they're axioms: assumptions underlying all the research, such that if you did change them, your own hypothesis wouldn't be able to lean on any of the existing research for support—because your hypothesis would exist in a different axiomatic universe from everything else. That's not to say you shouldn't; the axioms assumed in the model might not be the same ones that actually apply to our own universe. But frequently, the only thing that studies like economics care about is whether something is true or false in the model, rather than whether it's true or false in reality. In economics (and in many other disciplines) the model is an idealized universe we're interested in studying for its own sake, whether or not it is a perfect (or even close) description of reality. In other words: while we may never learn whether there can be such a thing as an efficient market on Earth, we will be able to know decisively whether there can be an efficient market in the nation of RationalActoria, a land-plate resting on a giant spherical cow. And knowing that can actually be helpful! Especially, the knowledge that something can't be true, even under those conditions, can frequently tell us a lot about whether it can happen in the real world. And that's the real concept to learn there, I think: that even a stupid, low-dimensional model that doesn't have much precision in reflecting the real world can very effectively answer real questions, especially questions about what can't happen—because if it can't happen in "ideal conditions", it certainly can't happen in real ones.

freshhawk 11y ago
That's well put, but clearly not the implied takeaway - given that they are interspersed with other items describing real world subtle human biases.