Re: Question regarding Wald (1933); (1951) Econometrica

["John M. Legge" <jlegge@xxxxxxxxxx>]

I think that Peter is arguing along the lines Kauffman uses in Origins of Order: the existence of any links between commodities (car and tyres, bread and butter, bed and breakfast) makes the utility surface complex with many local maxima (= multiple eqilibria).  The postulate of a unique equilibrium is homologous with the postulate of an active, interventionist and entirely benevolent deity.  Economic theocrats in Australia call themselves economic "rationalists"; they start with a lie and take it from there.

The most important PK issue may be explaining why orthodox economics has such a strong hold on apparently reasonable people, in spite of its obvious separation from reality.

JML

 Peter Dorman wrote:
> Note: while the absence of gross substitutability and diminishing
> returns (production, consumption) are sufficient for the establishment
> of multiple equilibria, they aren't necessary.  For almost 20 years now
> I have been arguing that, in the real world, the main source of multiple
> eq is nonconvexity due to nonmarket interaction between either agents or
> commodities.