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I think it's a pretty crude oversimplification to say it's a proof when the whole idea hinges on the whole rational actors axiom. Sure, it might be a proof with
by Etheryte 2y ago
I think it's a pretty crude oversimplification to say it's a proof when the whole idea hinges on the whole rational actors axiom. Sure, it might be a proof with that axiom, but it doesn't say much anything about the real world.
- cs702 2y agoI'm not sure I understand what you're saying. The whole edifice of "markets converge toward general equilibrium" rests on the assumption that people are rational, i.e., maximize utility -- which is economist jargon for "people are trying to do better for themselves." If you take away that, the whole theoretical edifice justifying markets collapses.