Tobin on game theory.

[Paul Davidson <PB108928%UTKVM1.BITNET@xxxxxxxxxxxxxxxxx>]

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center  (615) 974-4221
I have just come across the following quote from James Tobin (dated Feb. 1993):

"What rational expectations has done to macroconomics is what game theory has b
een doing to microeconomics. Game theory has the problem that it leads to multi
ple solutions all the time, so it doesn't seem to get results. Its got the same
 fascination for people looking for new ways to use their mathematical and
puzzle solving prowess as rational expectations has, and that comes at the expe
nse of more pragmatic, and empirical, and institutional industril organization
studies. So I am not so sure that all is well in microeconomics either."
(A Modern Guide to Macroeconomics, by Snowden, Vane and Wynarczyk, 1994,p. 135)

      Any comments?

Have a good day!____Paul Davidson
))))_ fax # (615) 974-1686