Why selfishness alone is not effective?
My activity is funded by your donations.
******************************************************
https://www.kisskissbankbank.com/fr/p...
/ heu7reka
https://www.tipeee.com/heu-reka
My book: https://www.payot-rivages.fr/payot/co...
0:00 - Ouin ouin uTip has closed
1:29 - Intro
2:25 - The Hotelling model
6:58 - The link with general equilibrium theory
Sources and erratum:
******************************************************
Based on the Hotelling model, I found inspiration in chapter 10 of this book:
"Economic Methodology" - Claude Mouchot
https://www.amazon.fr/M%C3%A9thodolog...
On general equilibrium, the clearest and most precise I've had access to so far:
"Neoclassical Economic Theory" - Bernard Guerrien, Emmanuelle Bénicourt
https://www.editionsladecouverte.fr/l...
Episode Issue:
******************************************************
We all know Adam Smith's invisible hand of markets: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but rather from the care they take in seeking their own interest. We do not rely on their humanity, but on their selfishness." In other words: let's all be selfish and everything will turn out for the best.
Smith's thinking was far more complex. He particularly emphasized the importance of altruism. But can we imagine a world that, guided by selfishness alone, allows us to achieve a certain form of economic efficiency? Hasn't this efficiency been demonstrated by economists? Isn't this the latter that we refer to when we talk about "market equilibrium"?
By delving into a very simple mathematical model, it is possible to understand what economists have actually demonstrated about the invisible hand of markets. Spoiler alert: even math tells us that pure selfishness isn't a very good idea.
Follow me on:
******************************************************
Twitter ---- / heu7reka
Music from the album: 80s Retrowave / Synthwave Music - Hackers by Karl Casey // Royalty-Free Copyright-Safe Music - • Royalty Free 80s Synthwave - Hackers // Co...