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I'm no expert myself, but my layman's understanding of some of the pushback behavioral economics has for the field of economics is relevant for your point. Spe
by JulianWasTaken 5y ago
I'm no expert myself, but my layman's understanding of some of the pushback behavioral economics has for the field of economics is relevant for your point.
Specifically, from what I've seen, behavioral economics precisely wishes to reject predicting behavior via these simple economic models in favor of more nuanced understandings of complex behaviors, derivable only through empirical observation of what consumers really do, not what they should do or a simplistic law predicts they should do.
(It's an interesting comparison to CS too.)
- thwayunion 5y ago> (It's an interesting comparison to CS too.) Particularly since the first behavioral economist to get a Nobel was also an early pioneer in many fields which are now housed in CS departments: programming languages, artificial intelligence, theorem proving.
- severine 5y ago> the first behavioral economist to get a Nobel Possibly referencing https://en.wikipedia.org/wiki/Herbert_A._Simon https://en.wikipedia.org/wiki/Herbert_A._Simon Thanks for your input in this thread!
- hither_shores 5y agoYou're not wrong, but GP's error is much more object level than that. The neoclassical paradigm has flaws; claiming that all markets are perfectly competitive is not one of them. Sweet tea is a textbook case of monopolistic competition, and short run inelasticity is to be expected.
- WalterBright 5y agoSupply & Demand does not require perfectly competitive markets.