aturday, April 22, 2017
UNDOING WESTERN CIVILIZATION ONE THEORY AT A TIME
Expected utility theory...Amos (Tversky) made it clear that it had been accepted as psychologically true... the entire economics profession accepted it as how ordinary people made risky choices...that leap of faith had at least one obvious implication...
..the advice economists gave politicians it tilted everything in the direction of giving people the freedom to choose and leaving markets alone... after all, if people could be counted on to be basically rational, markets could, too. p 255
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