Re: Economics Perfidy: Economics Literacy Test

From: John Conover <john@email.johncon.com>
Subject: Re: Economics Perfidy: Economics Literacy Test
Date: 1 Nov 1999 21:53:28 -0000


masonc@ix.netcom.com writes:
>
>  Just cleaning my files today, I came upon another wonderful
>  quotation to add to my collection:
>
>  "Debreu mathematically proved that competitive markets with
>  prices generate results that maximize the social welfare."
>

Hi Mason. But a lemma to Debreu/Nash-in competitive markets-is that
industrial markets start as a panoply, and evolve into an oligopoly,
with each company making zero profit, too.

It seems that, mathematically, there is no such thing as a perfect
social/economic system.

        John

--

John Conover, john@email.johncon.com, http://www.johncon.com/


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