Comment by mdp2021
2 days ago
Soon after John Stewart Mill we assessed that markets are not perfect.
Accelerations in the different directions of bounded incentives create as-if Brownian motions, - not the stability towards optimality of a perfect organic model.
Or: what you write is rational, but people are easily not... The supply side should disappear from the market when irrational, but changes are slow..
Did we? Because while seemingly obvious nowadays it is not a settled matter in orthodox econ academia.
Yes. Everybody here should be or get acquainted with Herbert Simon - he is both "Logic Theory Machine" and "General Problem Solver" and "linked lists", and "bounded rationality" and "satisficing".
Herbert Simon - https://en.wikipedia.org/wiki/Herbert_A._Simon
People would benefit from learning some control theory too. A little tinkering with (even abstract) PID controllers can quickly disabuse one of the notion that feedback loops settle instantly.