Ed Weick wrote:
Just a quick comment, Keith, perhaps more later.
I said:


    Perfect competition is nothing more than a static theoretical
    device, not something that you'd find out there in the real economy.
[snip]

This reminds me of the latest NetFuture newsletter (Steve Talbott)

http://www.netfuture.org/

where he does an extensive deconstruction of the limits
of physical laws for predicting what hapens to us in the
real world.

He points out that, in reality, Newton's ideal masses which
travel forever in a straight line without change of
either speed or direction (etc.) are never encountered:
everything we find is in curved motion -- often, as the
ancients asserted: circular (or more-or-less circular..)
motion.

So just as ideal masses going on forever in straight
lines end up in cats' ball of yarn coreoraphies of
cuvilinear motion -- so too, as you say, the condition for
monopoly (circular motion) is perfect competition
(straight-line motion).

The ancients were unable to penetrate the circles to
find the straight lines "underlying"; we are unable to
penetrate real economic conditions to find the
perfect competition "underlying", and, for all
practical purposes, neither of us is/was the worse for it.

But the modern person who believes objects really
do move in straight lines forever, just like the modern
person who beleves in perfect competition, has a
grossly distorted view of their environment.

    Eppur si muove.
       (--Galileo, which was perhaps more a political than
        a physics statement).

\brad mccormick

--
  Let your light so shine before men,
              that they may see your good works.... (Matt 5:16)

Prove all things; hold fast that which is good. (1 Thes 5:21)

<![%THINK;[SGML+APL]]> Brad McCormick, Ed.D. / [EMAIL PROTECTED]
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