http://analyticaleconomist.blogspot.com/2013/06/anarcho-capitalistic-dogmatism.html
"Yet another problem is the Neo-Austrian/Neo-Rothbardian anarcho-capitalist rejects model theory in economics because they believe that models cannot properly capture reality. So for example, the perfect competition model shows what an economy would look like given these assumptions:
Infinite buyers and sellers
Zero entry and exit barriers
Perfect mobility of goods and services
Perfect information
Zero transaction costs
Profit maximization
Homogeneous products
Non-increasing returns to scale
Property rights
All economists realize that these factors do not exist in real-time but nonetheless, it is a theory that can be utilized for advancement of a free society.
Here is the problem for the Neo-Austrian/Neo-Rothbardian anarcho-capitalist; while rejecting models for lack of realism, the perfect competition model IS the anarcho-capitalist theory of society. This, of course, is highly problematic."
thoughts??...
"Yet another problem is the Neo-Austrian/Neo-Rothbardian anarcho-capitalist rejects model theory in economics because they believe that models cannot properly capture reality. So for example, the perfect competition model shows what an economy would look like given these assumptions:
Infinite buyers and sellers
Zero entry and exit barriers
Perfect mobility of goods and services
Perfect information
Zero transaction costs
Profit maximization
Homogeneous products
Non-increasing returns to scale
Property rights
All economists realize that these factors do not exist in real-time but nonetheless, it is a theory that can be utilized for advancement of a free society.
Here is the problem for the Neo-Austrian/Neo-Rothbardian anarcho-capitalist; while rejecting models for lack of realism, the perfect competition model IS the anarcho-capitalist theory of society. This, of course, is highly problematic."
thoughts??...