Sunday 3 April 2016

Quote of the Day (1) - Robert Solow on Utility Maximisation - 2016 April 3

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The assumption that everyone optimizes implies only weak and uninteresting consistency conditions on their behavior. Anything useful has to come from knowing what they optimize, and what constraints they perceive.

The source.

By the way, what is the difference between a maximum and an optimum? This is useful.

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