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mdp2021

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..

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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.

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