isocr's blog

Perfect Competition and Equilibrium

Pyotr Malatesta

Only under conditions of perfect competition, are prices an outcome of equilibrium between supply and demand, and therefore are a measure of efficiency, given an assumed distribution of property.

Since real markets never conform to conditions of perfect competition, there is no reason to think that economies are ever in equilibrium, nor that economies ever "tend" towards equilibrium (this "tending toward equilibrium" is a conceptual confusion, like "always tending towards pregnancy, without ever being pregnant" being the same as "never pregnant" ).

The Melbourne Car Attack

Instead of getting frustrated and arguing with a bunch of you on the internet I'm just going to say this...

There is a massive difference in intent and culpability between someone who commits domestic violence because they enjoy having power and control over others and someone who is violent due to significant mental health issues which are exacerbated by self-medication with psychosis inducing street drugs.

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