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Microeconomics is less hand wavy sure, they have clear cut formulas and solid maths, right? Too bad microeconomics is complete shit, and has far less predictiv
by Mikeb85 10y ago
Microeconomics is less hand wavy sure, they have clear cut formulas and solid maths, right? Too bad microeconomics is complete shit, and has far less predictive power than even the most simple macroeconomic models. Microeconomics is what brings us simplistic assumptions about behaviour, and assumes 100% rationality. And then when microeconomics actually attempts to become useful, with things like indifference curves and non-cooperative games, it becomes hand-wavy, because what's more hand-wavy than arbitrary numbers for preferences? Behavioural economics came into being because of how bad microeconomics is.