tag:blogger.com,1999:blog-6837159629100463303.post3661226241927270909..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: Adam Smith's circular logic and path dependence in economic theoryJason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6837159629100463303.post-50408438416740816732015-06-10T21:42:12.390-07:002015-06-10T21:42:12.390-07:00Cheers, Bill. I actually thought I hadn't made...Cheers, Bill. I actually thought I hadn't made my point clearly enough and you were saying something similar!Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-48917372394281774812015-06-10T21:38:48.955-07:002015-06-10T21:38:48.955-07:00I was not arguing with you. I was making a side co...I was not arguing with you. I was making a side comment about economic rhetoric.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-57627686892893663392015-06-09T16:32:17.312-07:002015-06-09T16:32:17.312-07:00The appeal to human decisions was baked in at the ...The appeal to human decisions was baked in at the start of the journey -- at least that was the message I was trying to say about "path dependence". But human decisions are not the only process to create prices in a model -- randomness is another method.<br /><br />You'd still have to introduce a "scale" p₀ in some way -- otherwise there is no level for the water to seek!Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-5445830202515884262015-06-09T02:30:37.020-07:002015-06-09T02:30:37.020-07:00Smith's description of the properties of the n...Smith's description of the properties of the natural price in the quote sounds like the "just price" of the Middle Ages. Jacking up the price of snow shovels after a snow storm, which many today justify by supply and demand, does not yield Smith's natural price. What is different is that the natural price is not established by law or custom, but by a process by which commodities seek their own prices naturally, like water seeks its level. The appeal to nature to explain the decisions of human beings persists in economics today.Anonymousnoreply@blogger.com