Interesting point

The principal findings of experimental economics are that impersonal exchange in markets converges in repeated interaction to the equilibrium state implied by economic theory, under information conditions far weaker than specified in the theory.

Vernon Smith.

Another way of putting it. Perhaps the real world does not have the characteristics that theory strictly requires. But we still seem to get to where theory predicts we will be.

 

2 comments on “Interesting point

  1. Since economics consists of multitudes of alternate theories then some of them will be bound to be right at some time.

  2. Unsurprising, I think, but well worth testing experimentally. I’m unclear why he calls this finding “findings”.

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