Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
dinofelis
on 12/04/2015, 18:34:59 UTC

central planning is not incompatible to democratic concesus, central planing of economy is orthogonal to society's method of rule.

ok lets recap, nash equilibrium existence does not guarantee
1 stability of the eq
2 optimality of the eq
3 reachability of the eq
4 persistance of the eq
now tell me why one should invest playing a game with uncertain outcome? for some illusion of freedom of tv-imposed choice?


This is somewhat akin to:

A: - If you want to jump from an air plane, the only way to have a possibility to reach the ground safely, is with a parachute

B: - Jumping with a parachute doesn't guarantee:
       1) that it will open
       2) that the ropes will not mangle
       3) that down under you will not fall into a lake and drown

now tell me why on earth I should use a parachute with an uncertain outcome ?  Let's jump without !

sorry not the same, parachutes have gone through vigorous testing, while "free market" doesnt have a great success record, besides I gave you a jet pack.


I'm not talking about free market, I'm talking about your logical error.

I say: "no social system can be stable if it is not a Nash equilibrium".

You answer: "there's no guarantee that you reach a Nash equilibrium, so let's go for a non-Nash equilibrium solution".

There's a logical error here, which I tried to point out with my colorful parachute example.

The logical error is this:

The statement "if a social system is stable, it needs to be a Nash equilibrium"
is not contradicted by a statement like "one might not reach a Nash equilibrium, or there may be many"
But that certainly doesn't imply: if it is NOT a Nash equilibrium, it might be stable.  Indeed, that last statement is forbidden by the theorem that has not been disproved.

It is not because a parachute might not work, that you can save your ass by jumping out of a plane without one.  It is not because a Nash equilibrium might not be reached, that you can find stable social systems which aren't Nash equilibrium.