Re:The Sonnenschein-Mantel-Debreu Results After Thirty Years
by Etheryte on Tuesday January 21, 2025 @01:37PM
(#42783683)
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.
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Re:The Sonnenschein-Mantel-Debreu Results After Thirty Years
by cs702 on Tuesday January 21, 2025 @02:08PM
(#42784052)
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.