by From Lars Syll In its ‘scientific background’ description on the 2017 ‘Nobel prize’ in economics, The Royal Swedish Academy of Sciences writes (emphasis added): In order to build useful models, economists make simplifying assumptions. A common and fruitful simplification is to assume that agents are perfectly rational. This simplification has enabled economists to build powerful models to analyze a multitude of different economic issues and markets. What absolute nonsense! Writing this and at the same time giving the prize to an economist that has devoted his whole career to show how utterly wrong this modelling strategy is, is truly an amazing case of having bad luck when thinking …
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from Lars Syll
In its ‘scientific background’ description on the 2017 ‘Nobel prize’ in economics, The Royal Swedish Academy of Sciences writes (emphasis added):
In order to build useful models, economists make simplifying assumptions. A common and fruitful simplification is to assume that agents are perfectly rational. This simplification has enabled economists to build powerful models to analyze a multitude of different economic issues and markets.
What absolute nonsense! Writing this and at the same time giving the prize to an economist that has devoted his whole career to show how utterly wrong this modelling strategy is, is truly an amazing case of having bad luck when thinking …