tag:blogger.com,1999:blog-7539577136486286096.post7449064864405779880..comments2024-03-28T02:46:41.090-05:00Comments on Supply and Demand (in that order): Irrationality -- The Latest Red Herring Pulled from the Sea of Big Government AdvocacyCasey B. Mulliganhttp://www.blogger.com/profile/03317454408275318282noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7539577136486286096.post-31917029202467230342009-09-11T10:52:33.352-05:002009-09-11T10:52:33.352-05:00I don't like the alcohol analogy, though. Dr....I don't like the alcohol analogy, though. Dr. M has probably never been to an AA meeting. Spending on booze by an alcoholic is not discretionary spending, it is a necessity. And when he spends his money he spends his wifes, his kids, his friends, his company's. It is irrational and economic thinking doesn't need to explain it. Many alcoholics drink themselves to death. Not rational. The idea of an own price elasticity of booze for an alcoholic is something only a sober academic could imagine.Larryhttps://www.blogger.com/profile/16422050989231071379noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-13773569339383417682009-09-09T15:56:18.007-05:002009-09-09T15:56:18.007-05:00Anyway low demand as postulated by Keynesians is a...Anyway low demand as postulated by Keynesians is a collective action problem, a matter of collective rationality that has nothing to do with individual rationality.Tinohttps://www.blogger.com/profile/06744296507176750198noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-63234964514500370392009-09-09T11:32:46.676-05:002009-09-09T11:32:46.676-05:00Finally someone speaks out! As a matter of fact, w...Finally someone speaks out! As a matter of fact, we are now in a recession of economics education!Shenghttps://www.blogger.com/profile/11359026184760091385noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-63566041324175811922009-09-09T10:37:08.412-05:002009-09-09T10:37:08.412-05:00I think you'd like Micha Ghertner's "...I think you'd like Micha Ghertner's "<a href="http://distributedrepublic.net/archives/2004/12/25/what-does-the-free-market-require" rel="nofollow">What Does the Free Market Require?</a>". According to Matthew Mueller, the original version of the Alchian theorem (not the stronger claim made by Milton Friedman) tells a similar story.TGGPhttps://www.blogger.com/profile/11017651009634767649noreply@blogger.com