> Perfect markets don't exist and can't exist. Even diamonds are not perfect. Perfection is good to have in models to demonstrate limiting cases, but not nece

> Perfect markets don't exist and can't exist. Even diamonds are not perfect. Perfection is good to have in models to demonstrate limiting cases, but not necessary to know the difference between situations where prices are allowed adjust and where prices are not allowed to adjust. The "markets are not perfect" crowd loves to imagine the existence of a "perfect" and benevolent social planner who will always act according to their wishes. Let me know when you find one. (I know, "#realsocialism never been tried). > Economic theory has never been predictive to any reasonable margin of error. And a theory that cannot predict outcomes is not a valid theory. I find it ironic that you make this statement in the context of a clear cut demonstration of what happens when prices are not allowed to adjust. There are a zillion markets across the world where one does not need to depend on the benevolence of the proprietor to get what you want or the benevolence of the customer to earn a living. Those get conveniently ignored. If price controls worked so wonderfully, Uber, which was only an improvement on what was there before it and nothing close to "perfect", would not have become so popular. I would have loved for them to run a continuous double auction, but then nobody every gave me a billion dollars to burn. > distortions created by the markets By definition, distortions are created by interventions in markets.