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.
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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.