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The article is mostly about game theory, which has been a staple of economics for quite a while. That said, I would be very wary of jumping to such endeavors s
by vezzy-fnord 11y ago
The article is mostly about game theory, which has been a staple of economics for quite a while.
That said, I would be very wary of jumping to such endeavors simply because a particular branch of mathematics appears to supply a useful vernacular for a particular economic problem. More often than not, it leads to a situation where instead of offering new perspectives on problems, you simply repeat the same Walrasian equilibrium analysis or whatever orthodoxy, but in a more pompous language.
In fact, by far the most mind-bending and mentally invigorating economists have been those who have almost no mathematical analysis whatsoever. These include, for instance, GLS Shackle and Ludwig M. Lachmann. Their entirely verbal analyses has expanded understanding of real-world economic phenomena far more than papers on game theory, I'd argue.
Mathematical economics like the Solow-Swan growth model, Cobb-Douglas production functions, Walrasian auctioneer markets and Paretian static equilibrium models have sowed great confusion and unrealistic assumptions as much as they may have enlightened. A lot of misunderstandings on economic policy originate from taking comparative statics models too literally.
That said, there might be some use of theoretical CS. I've had the impression that process algebras like Hoare's CSP for modeling concurrency can be used for some microfoundations and thought experiments. I don't think any economist has done this yet.
- mafribe 11y agoThe article is mostly about game theory, which has been a staple of economics for quite a while. I suggest to read the article more carefully. It's about applying the study of computational complexity to game theory. When you approach conventional game theory from this angle, things become interesting: e.g. where conventional game theory says a Nash equilibrium exists, the complexity angle suggests that the market won't find the equilibrium, because the laptop can't (for example the problem might be NP complete), and the laptop is much faster than the market.