4 ms·
Hence the part about "real world" - yes, mathematically you can proof all this and it all looks nice and tidy, but all experience tells us that it doesn't work
by sgift 9y ago
Hence the part about "real world" - yes, mathematically you can proof all this and it all looks nice and tidy, but all experience tells us that it doesn't work that way outside the lab.
"The system is perfect, the people are the problem."
- wallace_f 9y agoBut there are a lot of markets where it does get close enough that the assumptions are useful in modelling the world. Agricultural products, food and beverage industry, market for unskilled labourers, etc. And in cases where there isn't perfect competition, many times good regulation can remedy the problems very effectively. I am very critical of many of the kinds of groupthink that exists in economics, but the idea that markets can work well is really not such a bad idea, especially when you compare it to the alternatives.
- sgift 9y ago> And in cases where there isn't perfect competition, many times good regulation can remedy the problems very effectively. Then we agree, but that is the big point I see in this discussions "regulations are always bad, regulations destroy markets" and so on. Regulated markets are a useful tool. And like all tools they can be misused or overused.