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I would disagree - the economy is anti-inductive[1] (in that it resists attempts to understand it). As soon as you implement the results of your sufficiently-so
by melloclello 12y ago
I would disagree - the economy is anti-inductive[1] (in that it resists attempts to understand it). As soon as you implement the results of your sufficiently-sophisticated model, the economy will start to be influenced by that.
Any viable model of the economy would therefore have to recursively contain a model of the model of the economy and so on.
[1] http://lesswrong.com/lw/yv/markets_are_antiinductive/ http://lesswrong.com/lw/yv/markets_are_antiinductive/
- stolio 12y agoThis is the second time in a week this article has come up so I read it. I've never read anything about economics that made any less sense than that. > As soon as you implement the results of your sufficiently-sophisticated model, the economy will start to be influenced by that. This is called a feedback loop, systems with feedback loops are well understood.