Re:The Sonnenschein-Mantel-Debreu Results After Thirty Years
by cherryteastain on Tuesday January 21, 2025 @02:57PM
(#42784534)
Free market economics is "singled out" because, at least in the Anglosphere, it is the only type of economy considred to reach an (eventual) optimum by itself.
Re:The Sonnenschein-Mantel-Debreu Results After Thirty Years
by cs702 on Tuesday January 21, 2025 @02:20PM
(#42784168)
As I wrote elsewhere on this thread (https://news.ycombinator.com/item?id=42783130), the problem is that a lot of busy people treat the "practical notion" that markets produce good, high-quality outcomes as if it were a fundamental law of the universe. It's not. There are no guarantees. Markets can converge to horrific equilibria. Let's be humble, open-minded, willing to rely on markets when they work, willing to try other things when they don't.
Re:The Sonnenschein-Mantel-Debreu Results After Thirty Years
by kelseyfrog on Tuesday January 21, 2025 @03:18PM
(#42784727)
This fundamentally changes the debate on market interventions. It's now possible to argue that the current equilibrium is only meta-stable and that interventions that change the supply and demand curves can potentially kick us out of one meta-stable equilibrium and into another more efficient one.
I wish we had more empirical supply-demand curves so we could refine our priors on supply and demand curve shapes, but that's a topic for another day.
That is proof that "free markets" are not guaranteed to converge toward good outcomes because it proves that every decision/optimization process that is believed to be even theoretically possible is not guaranteed to converge toward good outcomes. Singling out "free markets" as if they are even somewhat uniquely susceptible is just plain ridiculous. Everything is thoroughly screwed in the presence of arbitrarily complex functions.
As we have now seen and proven that everything is doomed in a arbitrarily malicious universe, it is only prudent to re-focus on problems under normal conditions and figure out the practical question of what systems produce good, high quality outcomes in a normal implementation over normal conditions.