3 ms·
> There are plenty of market theories that claim that in the long run decisions will converge towards an optimum. Do you have an example of an economist making
by sicp-enjoyer 4y ago
> There are plenty of market theories that claim that in the long run decisions will converge towards an optimum.
Do you have an example of an economist making that argument, outside of theoretical modeling?
I don't see the tautology. One person in a leadership position may value certain things and be willing to lose money on them. The cost gives their peers and supervisors at least one reason to question that practice.
- sudosysgen 4y agoThe tautology is that business inefficiencies are costs, either future, current, or comparative. Saying that inefficiencies will be punished in the long term is tautological, you're just restating the definition business inefficiencies. As far as economists making that argument, take a look at the strong and semi-strong EMH. Plenty of economists agree with the semi-strong version.