Lost and Found
By Sabiou M. Inoua, Vernon L. Smith
Economists miss the boat when they act if Arrow and Debreus general equilibrium model accurately describes markets in the real world of constant change. In contrast, the classical view on the market mechanism offers a helpful foundation on which to add modern insights about how markets create and coordinate information.
|Other Independent Review articles by Vernon L. Smith|
|Spring 2016||Economic Modeling:Why the Standard Model Survives Bad Performance|
|Winter 2001/02||Demand-Side Bidding Will Reduce the Level and Volatility of Electricity Prices|