But would this really give us economic models more useful than the simplified ones currently used? Taking more factors into account may make the models so hard to maximize that there is no net gain in predictive accuracy. Thoughts, anyone?
~Alypius > - Economists need to expand the repertoire of explanations. Economists > should learn how to model rule-based behaviors and interactions with the > same ease as they can calculate a Langrangian multiplier. Econ 101 should > start with a speech saying how people sometimes apply rules to economic > behavior and at other times they act like classical utility maximizers. > Students will then learn marginal analysis and models that embody rules > based behaviors. > > So there you have it. Some rambling thoughts... > > Fabio > >