tag:blogger.com,1999:blog-8424267157203564446.post5794356421659200024..comments2022-10-25T09:48:22.092+01:00Comments on Modern Debt Jubilee: Putting the Cart Before the HorseJayaravahttp://www.blogger.com/profile/13783922534271559030noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8424267157203564446.post-18085192524494123972012-08-25T21:52:19.268+01:002012-08-25T21:52:19.268+01:00When studying economics I was quite a fan of game ...When studying economics I was quite a fan of game theory, in particular how outcomes could arise that were counter-intuitive to ones economics would expect based on the usual assumptions. In particular Nash's insight in the prisoners' dilemma that agents acting under the economist's definition of 'rational' (ie selfish and utility maximising) could still bring about a result that made both agents worse off went completely against the economic principal that rationality increased welfare proposed by Adam Smith onwards. In my inexperience, this suggested a way that the economic theories I was learning could tie in to the real world that seemed to contradict them.<br /><br />Now I am beginning to learn that the reason some of these theories don't tie into the real world is because they are simply not correct, but I still have a begrudging respect for these economists who fight these incorrect foundations on the neoclassical's own terms, such as Stiglitz and Krugman. Whether Nash was doing this isn't clear, but in fictional interpretations of his life he seems to be proud of his proof that Adam Smith was wrong.Anonymoushttps://www.blogger.com/profile/15119340999318017941noreply@blogger.com