tag:blogger.com,1999:blog-3621026.post5832973417975857766..comments2024-03-29T06:05:04.162+01:00Comments on Robert's Stochastic thoughts: Thoughts on "Euler's Theorem Denialism"Roberthttp://www.blogger.com/profile/14455788499385673507noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-3621026.post-29480097721153635152023-10-17T10:31:35.471+02:002023-10-17T10:31:35.471+02:00I'm appreciative of how lovely nature is and h...I'm appreciative of how lovely nature is and how peaceful it makes me feel. This post is about the Contacts <a href="https://onlinecolorblindtest.cmonsite.fr" rel="nofollow">Best Color Blind Contact Lenses</a>. These lenses offer a truly precious sense of independence and freedom to people with color vision deficits.Todd Williamhttps://www.blogger.com/profile/01312837570129191793noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-4938250671036646352023-05-27T09:36:01.158+02:002023-05-27T09:36:01.158+02:00You are a constant source of inspiration for me. I...You are a constant source of inspiration for me. I always feel motivated and ready to take action after reading your blog posts. Here is a detailed reference to this profile <a href="https://www.walkscore.com/people/292483853575/color-blindness" rel="nofollow">Color Blindness Test</a>. In the field of color blindness testing, technological advancements have revolutionized the field, enabling more precise and efficient evaluations that positively impact the lives of those with color vision impairments.James J Burkhardthttps://www.blogger.com/profile/10974176738714076858noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-82057403316660669812015-06-20T05:40:58.114+02:002015-06-20T05:40:58.114+02:00Here's the "bizarro world": an entir...Here's the "bizarro world": an entire globe spanning academic discipline believes that human behavior is best described by analogies to physics. Historical examples of mechanical explanations for human behavior include phrenology, astrology and ABC News's coverage of AC/DC fans as satan worshiping teen predators in the 1980s. Thornton Hallhttps://www.blogger.com/profile/11402495641975262697noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-56437724500545228942015-06-17T17:22:10.657+02:002015-06-17T17:22:10.657+02:00Maximize profit or die? No. I've known several...Maximize profit or die? No. I've known several owners of small businesses who worked when they wanted to. There's an infinite (for varying sizes of infinity) amount of money in the world but a finite amount of time. <br /><br />Besides, the death of every business is over-determined anyway. It's not something that you'd want to hang a theory on.Jeffrey Davishttps://www.blogger.com/profile/17966839006518642902noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-70046536981539454392015-06-12T21:13:23.257+02:002015-06-12T21:13:23.257+02:00My teacher Hubert Dreyfus taught me that philosoph...My teacher Hubert Dreyfus taught me that philosophical analysis is examining the assumptions and presuppositions of theories and models. Certainly that's what Austin and Wittgenstein do. I often find that economic papers or posts don't do that. As you say, the assumptions and presuppositions are often taken to be proven facts or apodictic. This is the main issue I have with many economists. Some seem to be behaviorists. <br /><br />One reason I really like Frank Knight is that he wrote a number of excellent essays on philosophical analysis. He was a follower of Pragmatism.Donald Pretarihttps://www.blogger.com/profile/14493535232127084725noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-75851189138675328302015-06-12T18:48:41.976+02:002015-06-12T18:48:41.976+02:00One exception would prove the second law of thermo...<i>One exception would prove the second law of thermodynamics false (for example if someone actually made and demonstrated a perpetual motion machine).</i><br /><br />Interestingly enough, that is exactly what would have to happen. By Noether's Theorem every conservation law corresponds to a symmetry in nature. For the second law that symmetry is time: the law's of physics don't vary with time. So a perpetual motion machine could be impossible until the time it was built. There would, of course, be no guarantee it would continue to work.Larry Headlundnoreply@blogger.comtag:blogger.com,1999:blog-3621026.post-90808626101916416762015-06-12T17:42:57.742+02:002015-06-12T17:42:57.742+02:00@Christos There is a large literature on what the ...@Christos There is a large literature on what the hell are firms doing, but I don't know much about it. <br /><br />@Jeff if a firm has market power, then it can achieve pure profit >0 (even if it has to borrow so if it has market power it can fail to maximize profits and still have pure profit =0. In the most standard models with perfect competition firms have pure profit =0 and don't die. "pure profit" is accounting profits - rK where r is the real rate of interest paid to investors and K is the real value of the firms capital stock. A firm with market power can make mistakes and still have accounting profits equal to rK and survive.<br /><br />My imaginary poorly organized firm acts like a perfectly competitive firm even though it has market power. That means the model is indistinguishable from the most traditional and conventional of models.<br /><br />@brad I've read Andolfato's post but not the article to which he links. In the post he describes this model as an alternative to the main model: there are a continuum of firms with access to the technology so they are perfectly competitive. It is also, in his terminology, partially excludable, because some other firms don't have access to the technology. So there is perfect competition but technology isn't a purely public good equally available to all. I see neither any mathematical difficulties with nor any point of this model (which is described in a paper which I haven't read).Roberthttps://www.blogger.com/profile/14455788499385673507noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-24457757048128192892015-06-12T15:45:56.641+02:002015-06-12T15:45:56.641+02:00Isn't the simple counterargument to your misco...Isn't the simple counterargument to your miscommunication example that such a firm will necessarily be unprofitable (as in profit<=0)? A firm with market power must use it or die.<br /><br />Metaphor: a car whose accelerator pedal has been hard-linked to its brake pedal. You can use as much gas, generate as much noise/heat/torque as you want, you're not going anywhere.Jeff Younghttps://www.blogger.com/profile/12680729526940989989noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-132684053487459832015-06-12T10:18:47.210+02:002015-06-12T10:18:47.210+02:00Thanks for the nice post. We know we *can't* a...Thanks for the nice post. We know we *can't* assume profit maximisation though; not in the real world. What that in mind, have there been any studies to investigate what utility firms appear to be maximising? (Making the strange assumption that their behaviour would be indistinguishable from that of a rational entity with a specific utility function).<br />Christos Dimitrakakishttps://www.blogger.com/profile/02379106463240929838noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-17336735481040551712015-06-12T02:25:22.649+02:002015-06-12T02:25:22.649+02:00Now if you are going to go to the trouble to read ...Now if you are going to go to the trouble to read Andolfatto, you then need to explain it to the rest of us. Andolfatto has an idea in which the owner of a non-rival idea has the power to exclude others from using it, yet must be a price-taker? How?bradhttps://www.blogger.com/profile/04548019979157668776noreply@blogger.comtag:blogger.com,1999:blog-3621026.post-28001760928708368022015-06-11T18:14:39.520+02:002015-06-11T18:14:39.520+02:00I cannot comment on the growth theory bit, and am ...I cannot comment on the growth theory bit, and am loathe to defend charlatans like Lucas and Prescott, but this is looking like the sort of discussion one would have in theology or metaphysics rather than one in any scientific discipline.<br /><br /><i>I find this odd, because Euler's theorem is math while the second law of thermodynamics is a scientific hypothesis -- it doesn't just follow from standard assumptions it implies predictions which have been confirmed again and again and again. One exception would prove the second law of thermodynamics false (for example if someone actually made and demonstrated a perpetual motioni machine). I think Romer's post is an illustration of the fact that for economists, standard assumptions have the status of known facts.</i><br /><br />Exactly my first reaction on reading Romer's post.<br /><br />Clearly, along with the profusion of charlatans, the scientific and epistemological illiteracy of at least some highly rated economists is what invites deserved ridicule for economic 'theory' from scientists, mathematicians, and fortunately for the discipline, many younger academic economists.<br />Hnoreply@blogger.com