3 ms·
I'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 rationa
by cs702 2y ago
I'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.