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.
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.