DOCSLIB.ORG

Tlpeobl (2015)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Tlpeobl (2015) Thinking like a Political Economist in the ordinaryEND business TIMES of life Timothée Parrique, [email protected] Economics is everywhere “I don’t care who writes a nation’s law - or crafts its advanced treatises - if I can write its economics textbooks.” Learning Economics as a Foreign Language Paul Samuelson (1915-2009) Ideology is everywhere “...valuations are always with us... Disinterested research here has never been and can never be. Prior to answers there must be questions. there can be no view except from a viewpoint. In the questions raised and the viewpoint chosen, valuations are implied.” (1978) Gunnar Myrdal (1898-1987) Today • Part I: What is the difference between the different economic schools of thought? • Part II: What does it mean to think like an economist? • Part III: What does it mean to think like a political economist (in the end times)? PART I Seven Samurai (1954) The Ideological Landscape of Economics The Ideological Landscape of Economics economic sociology Philonomics classical Evolutionary Marxist Gandhian Mainstream Sraffian Mainline Post-Keynesian Feminist Ecological Agent-based computational Radical Ethonomics Clionomics Environmental Austrian Experimental Abenomics Kudonomics Econophysics Economic history new Green sustainability Bionomics Shimomuran Institutional Happiness psychological Anarchist Neuroeconomics Complexity Steady-State Socioeconomics Economic geography Political economy Degrowth behavioural Econometrics NeoKeynesian Neoclassical Modinomics monetarist Heterodoxy sustainability Marxian Mainstream (or orthodoxy) Green Ecological Bionomics new institutional Sraffian Degrowth Post-Keynesian new keynesian Steady-State new behavioural old behavioural neoclassical Feminist environmental Classical neuroeconomics Austrian Institutional econophysics Gandhian economic sociology economic history economic geography Mainstream Heterodoxy 1890 Neoclassical Economics Individuals know what they are doing, so leave them alone - except when markets malfunction • Inspired by Jevons, Walras, Marshall • Subjective theory of value 1. Micro > macro (methodological individualism) 2. The economy is made of rational and selfish individuals (no classes, only Homo Economicus) 3. Self-equilibrating markets, and invisible hand • High degree of precision and logical Paul Samuelson (1915 - 2009) clarity because heavily mathematical 1867 Marxian Economics Capitalism is a powerful vehicle for economic progress, but it will collapse, as private property ownership becomes an obstacle to further progress • Inspired by Marx but not the same as Marxism • Labour theory of value and surplus • The economy is made of classes • Focus mode of production, and its power relations (‘historical materialism’) • Criticise capitalism as a system • Study work, and technological Michel Aglietta (1938) innovation 1870s Austrian Economics No one knows enough, so leave everyone alone. • Inspired by Carl Menger, F. Hayek • Only individuals choose (‘methodological individualism’), but they have limited rationality • The world is complex and uncertain • Institutional frame matters (e.g. private property) • Cost and utility are subjective • Prices economise on knowledge • Markets are spontaneous orders, so free market is best Steve Horwitz (1964) 1898 Institutional Economics Individuals are products of their society, even though they may change its rules • Inspired by Thorstein Veblen, John Commons, Wesley Mitchell • ‘evolutionary economics’ (Darwin) • Focus on habits and institutions • Habit/Routine = non-deliberative propensity to engage in a previously adopted pattern of behaviour • Institution = way of thought or action embedded in the habits of a group • Agents are both producers and products of their circumstances • Rationality is not given but shaped by the social Elinor Ostrom (1933-2012) environment 1970s (1936) Post-Keynesian Economics What is good for individuals may not be good for the whole economy • Inspired by Keynes • The future is fundamentally uncertain • Government should take an active role • Social conflict between classes • Macro > micro • History matters Steve Keen (1953) 1980s (1966) Ecological Economics Nature knows best; economists should spend more time in their gardens • Inspired by Nicholas Georgescu-Roegen, Kenneth Boulding, Eugene & Howard Odum • The economy as a subsystem of the planet; limits to growth • Interdisciplinary (biomimicry) • Follow the laws of thermodynamics, and acknowledges complexity • End goals = sustainable scale + efficient allocation + fair distribution • Development rather than growth Herman Daly (1938) • Biocentrism; intra- and intergenerational justice 1990s Feminist Economics Who do you think cooked Adam Smith’s dinner? Production is only the tip of the iceberg • Inspired by Mary Wollstonecraft, J.S. Mill, Harriet Taylor Mill • Denounce androcentrism in ME • Focus not only on production, but on reproduction (unpaid labour) • Logic of accumulation vs. logic of sustaining life • Economic analysis should focus on gender; Institutional structures create gender inequality Julie A. Nelson (1956) • Econ. = the ‘provisioning of life’ POLITICAL ECONOMIST Which school of thought is currently being understood as ‘mainstream economics’? Neoclassical Monetarism economics Post-Keynesian Keynesianism economics If I criticise the assumption that individuals are fully rational, I am likely to be… A neoclassical A orthodox economist economist An heterodox economist Which of the following schools does NOT acknowledge the existence of fundamental uncertainty? Neoclassical Ecological economics economics Post-Keynesian Austrian economics economics Which of the following schools seek to explain the functioning of the economy by looking at routines and social rules? Institutional Feminist economics economics Austrian economics Marxian economics Which of the following schools does not hold methodological individualism as a core axiom? Post-Keynesian Neoclassical economics economics Austrian economics Which of the following axioms is NOT characterising the theories of the neoclassical school? Homo Economicus Spontaneous orders Methodological Equilibrium individualism Which of the following objectives is NOT part of ecological economist core principles? Efficient allocation of Fair distribution of resources wealth Equilibrium with Optimal scale natural ecosystems Which of the following schools is likely to see its members described as libertarians? Austrian economics Feminist economics Post-Keynesian Marxian economics economics Which of the following schools of thought is more likely to dismiss the occurrence of unequal exchanges? Ecological economics Marxian economics Neoclassical economics Feminist economists argue that most of economic activity is rendered invisible by mainstream economics. True False Neoclassical economics PART II A Beautiful Mind (2001) Thinking Like an Economist 1) People face trade-offs The Matrix (1999) Scarcity • Resource = anything that can be used to produce something else • Scarce resource = when there’s not enough of it to satisfy our wants “People must make choices because resources are scarce” 2) The cost of something is what you give up to get it Opportunity Cost • What is the cost of our decisions? • As a result of scarcity, choices have to be made; the opportunity cost is the cost of those choices. • Opportunity cost = the best alternative that has to be sacrificed when you choose to do something “The opportunity cost of an item - what you must give up in order to get it - is its true cost” The Gold Rush (1925) 3) Rational people think at the margin Marginal Thinking • How do we make “how much” decisions? • Marginal cost = the additional cost above what you’ve already incurred • Marginal benefit = the additional benefit above what you’ve already received “How much decisions require making trade-offs at the margin: comparing the costs and benefits of doing a little bit more or a little bit less of an activity.” The Economic Decision Rule: Cost Benefit Analysis (CBA) if Mb > Mc, Do it! - if Mc > Mb, Don’t do it! Marginal Thinking 2 laws: 1. Law of diminishing marginal utility: more is not always better 2. Law of increasing marginal cost: we always pick the low-hanging fruits first. 4) People respond to incentives Jaws (1975) Incentives • Incentives are factors that encourage or discourage various types of behaviour, actions or activities. “People usually respond to incentives, exploiting opportunities to make themselves better off.” 3 Types of incentives: 1. Financial (a tax) 2. Social (a law or custom) 3. Moral (feeling of guilt) Lords of War (2005) 5) There are gains from trade Trade • Why do the choices I make interact with the choices you make? • Division of labour (specialisation) generate the gains from trade. “There are gains from trade.” • Same at the international level: Theory of Comparative Advantage (Ricardo) 6) Resources should be used efficiently to achieve society’s goals WALL-E (2008) Efficiency • What does it mean to use resources efficiently? • An economy’s resources are used efficiently when they are used in a way that has fully exploited all opportunities to make everyone better-off • PARETO efficiency “Resources should be used as efficiently as possible to achieve society’s goals.” 7) Markets are usually a good way to organise economic activity Casablanca (1942) Invisible hand • Who control that resources are used efficiently? • “If is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own interest.”
Load more

Recommended publications
  • Journal of Mathematical Economics Implementation of Pareto Efficient Allocations
    Journal of Mathematical Economics 45 (2009) 113–123 Contents lists available at ScienceDirect Journal of Mathematical Economics journal homepage: www.elsevier.com/locate/jmateco Implementation of Pareto efficient allocations Guoqiang Tian a,b,∗ a Department of Economics, Texas A&M University, College Station, TX 77843, USA b School of Economics and Institute for Advanced Research, Shanghai University of Finance and Economics, Shanghai 200433, China. article info abstract Article history: This paper considers Nash implementation and double implementation of Pareto effi- Received 10 October 2005 cient allocations for production economies. We allow production sets and preferences Received in revised form 17 July 2008 are unknown to the planner. We present a well-behaved mechanism that fully imple- Accepted 22 July 2008 ments Pareto efficient allocations in Nash equilibrium. The mechanism then is modified Available online 5 August 2008 to fully doubly implement Pareto efficient allocations in Nash and strong Nash equilibria. The mechanisms constructed in the paper have many nice properties such as feasibility JEL classification: C72 and continuity. In addition, they use finite-dimensional message spaces. Furthermore, the D61 mechanism works not only for three or more agents, but also for two-agent economies. D71 © 2008 Elsevier B.V. All rights reserved. D82 Keywords: Incentive mechanism design Implementation Pareto efficiency Price equilibrium with transfer 1. Introduction 1.1. Motivation This paper considers implementation of Pareto efficient allocations for production economies by presenting well-behaved and simple mechanisms that are continuous, feasible, and use finite-dimensional spaces. Pareto optimality is a highly desir- able property in designing incentive compatible mechanisms. The importance of this property is attributed to what may be regarded as minimal welfare property.
    [Show full text]
  • Arxiv:0803.2996V1 [Q-Fin.GN] 20 Mar 2008 JEL Classification: A10, A12, B0, B40, B50, C69, C9, D5, D1, G1, G10-G14
    The virtues and vices of equilibrium and the future of financial economics J. Doyne Farmer∗ and John Geanakoplosy December 2, 2008 Abstract The use of equilibrium models in economics springs from the desire for parsimonious models of economic phenomena that take human rea- soning into account. This approach has been the cornerstone of modern economic theory. We explain why this is so, extolling the virtues of equilibrium theory; then we present a critique and describe why this approach is inherently limited, and why economics needs to move in new directions if it is to continue to make progress. We stress that this shouldn't be a question of dogma, but should be resolved empir- ically. There are situations where equilibrium models provide useful predictions and there are situations where they can never provide use- ful predictions. There are also many situations where the jury is still out, i.e., where so far they fail to provide a good description of the world, but where proper extensions might change this. Our goal is to convince the skeptics that equilibrium models can be useful, but also to make traditional economists more aware of the limitations of equilib- rium models. We sketch some alternative approaches and discuss why they should play an important role in future research in economics. Key words: equilibrium, rational expectations, efficiency, arbitrage, bounded rationality, power laws, disequilibrium, zero intelligence, mar- ket ecology, agent based modeling arXiv:0803.2996v1 [q-fin.GN] 20 Mar 2008 JEL Classification: A10, A12, B0, B40, B50, C69, C9, D5, D1, G1, G10-G14. ∗Santa Fe Institute, 1399 Hyde Park Rd., Santa Fe NM 87501 and LUISS Guido Carli, Viale Pola 12, 00198, Roma, Italy yJames Tobin Professor of Economics, Yale University, New Haven CT, and Santa Fe Institute 1 Contents 1 Introduction 4 2 What is an equilibrium theory? 5 2.1 Existence of equilibrium and fixed points .
    [Show full text]
  • An Equilibrium-Conserving Taxation Scheme for Income from Capital
    Eur. Phys. J. B (2018) 91: 38 https://doi.org/10.1140/epjb/e2018-80497-x THE EUROPEAN PHYSICAL JOURNAL B Regular Article An equilibrium-conserving taxation scheme for income from capital Jacques Temperea Theory of Quantum and Complex Systems, Universiteit Antwerpen, Universiteitsplein 1, 2610 Antwerpen, Belgium Received 28 August 2017 / Received in final form 23 November 2017 Published online 14 February 2018 c The Author(s) 2018. This article is published with open access at Springerlink.com Abstract. Under conditions of market equilibrium, the distribution of capital income follows a Pareto power law, with an exponent that characterizes the given equilibrium. Here, a simple taxation scheme is proposed such that the post-tax capital income distribution remains an equilibrium distribution, albeit with a different exponent. This taxation scheme is shown to be progressive, and its parameters can be simply derived from (i) the total amount of tax that will be levied, (ii) the threshold selected above which capital income will be taxed and (iii) the total amount of capital income. The latter can be obtained either by using Piketty's estimates of the capital/labor income ratio or by fitting the initial Pareto exponent. Both ways moreover provide a check on the amount of declared income from capital. 1 Introduction distribution of money over the agents involved in additive transactions follows a Boltzmann{Gibbs exponential dis- The distribution of income has been studied for a long tribution. Note that this is a strongly simplified model of time in the economic literature, and has more recently economic activity: it is clear that in reality global money become a topic of investigation for statistical physicists conservation is violated.
    [Show full text]
  • Strong Nash Equilibria and Mixed Strategies
    Strong Nash equilibria and mixed strategies Eleonora Braggiona, Nicola Gattib, Roberto Lucchettia, Tuomas Sandholmc aDipartimento di Matematica, Politecnico di Milano, piazza Leonardo da Vinci 32, 20133 Milano, Italy bDipartimento di Elettronica, Informazione e Bioningegneria, Politecnico di Milano, piazza Leonardo da Vinci 32, 20133 Milano, Italy cComputer Science Department, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213, USA Abstract In this paper we consider strong Nash equilibria, in mixed strategies, for finite games. Any strong Nash equilibrium outcome is Pareto efficient for each coalition. First, we analyze the two–player setting. Our main result, in its simplest form, states that if a game has a strong Nash equilibrium with full support (that is, both players randomize among all pure strategies), then the game is strictly competitive. This means that all the outcomes of the game are Pareto efficient and lie on a straight line with negative slope. In order to get our result we use the indifference principle fulfilled by any Nash equilibrium, and the classical KKT conditions (in the vector setting), that are necessary conditions for Pareto efficiency. Our characterization enables us to design a strong–Nash– equilibrium–finding algorithm with complexity in Smoothed–P. So, this problem—that Conitzer and Sandholm [Conitzer, V., Sandholm, T., 2008. New complexity results about Nash equilibria. Games Econ. Behav. 63, 621–641] proved to be computationally hard in the worst case—is generically easy. Hence, although the worst case complexity of finding a strong Nash equilibrium is harder than that of finding a Nash equilibrium, once small perturbations are applied, finding a strong Nash is easier than finding a Nash equilibrium.
    [Show full text]
  • Egalitarianism in Mechanism Design∗
    Egalitarianism in Mechanism Design∗ Geoffroy de Clippely This Version: January 2012 Abstract This paper examines ways to extend egalitarian notions of fairness to mechanism design. It is shown that the classic properties of con- strained efficiency and monotonicity with respect to feasible options become incompatible, even in quasi-linear settings. An interim egali- tarian criterion is defined and axiomatically characterized. It is applied to find \fair outcomes" in classical examples of mechanism design, such as cost sharing and bilateral trade. Combined with ex-ante utilitari- anism, the criterion characterizes Harsanyi and Selten's (1972) interim Nash product. Two alternative egalitarian criteria are proposed to il- lustrate how incomplete information creates room for debate as to what is socially desirable. ∗The paper beneficiated from insightful comments from Kfir Eliaz, Klaus Nehring, David Perez-Castrillo, Kareen Rozen, and David Wettstein. Financial support from the National Science Foundation (grant SES-0851210) is gratefully acknowledged. yDepartment of Economics, Brown University. Email: [email protected] 1. INTRODUCTION Developments in the theory of mechanism design, since its origin in the sev- enties, have greatly improved our understanding of what is feasible in envi- ronments involving agents that hold private information. Yet little effort has been devoted to the discussion of socially desirable selection criteria, and the computation of incentive compatible mechanisms meeting those criteria in ap- plications. In other words, extending the theory of social choice so as to make it applicable in mechanism design remains a challenging topic to be studied. The present paper makes some progress in that direction, with a focus on the egalitarian principle.
    [Show full text]
  • Arxiv:1701.06410V1 [Q-Fin.EC] 27 Oct 2016 E Od N Phrases
    ECONOMICS CANNOT ISOLATE ITSELF FROM POLITICAL THEORY: A MATHEMATICAL DEMONSTRATION BRENDAN MARKEY-TOWLER ABSTRACT. The purpose of this paper is to provide a confession of sorts from an economist to political science and philosophy. A confession of the weaknesses of the political position of the economist. It is intended as a guide for political scientists and philosophers to the ostensible policy criteria of economics, and an illustration of an argument that demonstrates logico-mathematically, therefore incontrovertibly, that any policy statement by an economist contains, or is, a political statement. It develops an inescapable compulsion that the absolute primacy and priority of political theory and philosophy in the development of policy criteria must be recognised. Economic policy cannot be divorced from politics as a matter of mathematical fact, and rather, as Amartya Sen has done, it ought embrace political theory and philosophy. 1. THE PLACE AND IMPORTANCE OF PARETO OPTIMALITY IN ECONOMICS Economics, having pretensions to being a “science”, makes distinctions between “positive” statements about how the economy functions and “normative” statements about how it should function. It is a core attribute, inherited largely from its intellectual heritage in British empiricism and Viennese logical positivism (McCloskey, 1983) that normative statements are to be avoided where possible, and ought contain little by way of political presupposition as possible where they cannot. Political ideology is the realm of the politician and the demagogue. To that end, the most basic policy decision criterion of Pareto optimality is offered. This cri- terion is weaker than the extremely strong Hicks-Kaldor criterion. The Hicks-Kaldor criterion presupposes a consequentialist, specifically utilitarian philosophy and states any policy should be adopted which yields net positive utility for society, any compensation for lost utility on the part arXiv:1701.06410v1 [q-fin.EC] 27 Oct 2016 of one to be arranged by the polity, not the economist, out of the gains to the other.
    [Show full text]
  • Pareto Efficiency by MEGAN MARTORANA
    RF Fall Winter 07v42-sig3-INT 2/27/07 8:45 AM Page 8 JARGONALERT Pareto Efficiency BY MEGAN MARTORANA magine you and a friend are walking down the street competitive equilibrium is typically included among them. and a $100 bill magically appears. You would likely A major drawback of Pareto efficiency, some ethicists claim, I share the money evenly, each taking $50, deeming this is that it does not suggest which of the Pareto efficient the fairest division. According to Pareto efficiency, however, outcomes is best. any allocation of the $100 would be optimal — including the Furthermore, the concept does not require an equitable distribution you would likely prefer: keeping all $100 for distribution of wealth, nor does it necessarily suggest taking yourself. remedial steps to correct for existing inequality. If the Pareto efficiency says that an allocation is efficient if an incomes of the wealthy increase while the incomes of every- action makes some individual better off and no individual one else remain stable, such a change is Pareto efficient. worse off. The concept was developed by Vilfredo Pareto, an Martin Feldstein, an economist at Harvard University and Italian economist and sociologist known for his application president of the National Bureau of Economic Research, of mathematics to economic analysis, and particularly for his explains that some see this as unfair. Such critics, while con- Manual of Political Economy (1906). ceding that the outcome is Pareto Pareto used this work to develop efficient, might complain: “I don’t his theory of pure economics, have fewer material goods, but I analyze “ophelimity,” his own have the extra pain of living in a term indicating the power of more unequal world.” In short, giving satisfaction, and intro- they are concerned about not only duce indifference curves.
    [Show full text]
  • Agent Based Models
    1 1 BUT INDIVIDUALS ARE NOT GAS MOLECULES A. Chakraborti TOPICS TO BE COVERED IN THIS CHAPTER: • Agent based models: going beyond the simple statistical mechanics of colliding particles • Explaining the hidden hand of economy: self-organization in a collection of interacting "selfish" agents • Bio-box on A Smith • Minority game and its variants (evolutionary, adaptive etc) • Box on contributions of: WB Arthur, YC Zhang, D Challet, M Marsili et al • Agent-based models for explaining the power law for price fluctuations 1.1 Agent based models: going beyond the simple statistical mechanics of colliding particles One might actually wonder how the mathematical theories and laws which try to explain the physical world of electrons, protons, atoms and molecules could be applied to understand the complex social structure and economic behavior of human beings. Specially so, since human beings are complex and widely varing in nature, properties or characteristics, whereas e.g., the electrons are identical (we do not have to electrons of different types) and indistinguishable. Each electron has a charge of 1.60218 × 10−19C, mass of 9.10938 × 10−31kg, and is a spin-1/2 particle. Moreover, such properties of Econophysics. Sinha, Chatterjee, Chakraborti and Chakrabarti Copyright c 2008 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim ISBN: 3-527-XXXXX-X 2 1 BUT INDIVIDUALS ARE NOT GAS MOLECULES electrons are universal (identical for all electrons), and this amount of informa- tion is sufficient to explain many physical phenomena concerning electrons, once you know the inter actions. But is such little information sufficient to in- fer the complex behavior of human beings? Is it possible to quantify the nature of the interactions between human beings? The answers to these questions are on the negative.
    [Show full text]
  • The Turning Point of Macroeconomics?
    ETH Zürich Invitation for The Turning Point Macro-Econophysics of 30, November 2010 Macroeconomics? Hiroshi Yoshikawa University of Tokyo “Macroeconomics was born as a distinct field The 2008-09 Financial Crisis in the 1940‟s, as a part of the intellectual (2005=100) 130 response to the Great Depression. The term 120 then referred to the body of knowledge and Exports expertise that economic disaster. My thesis 110 in this lecture is that macroeconomics in this 100 original sense has succeeded: Its central Industrial Production problem of depression prevention has been 90 solved, for all practical purposes, and has in 80 fact been solved for many decades. ” 70 Robert Lucas, Nobel Laureate 60 2006 2007 2008 2009 Presidential Address to the 2003 American Economic Association Source: METI, Cabinet Office Neoclassical Economics “ Most macroeconomics of the past 30 years was spectacularly Price Mechanism useless at best, and positively or Markets harmful at worst.” Paul Krugman、June 2009 Pareto Efficiency at Lionel Robbins Lectures in London School of Economics Adam Smith (1776) Invisible Hand “The most interesting recent developments The Adjustment of Price in macroeconomic theory seem to me describable as the reincorporation of Equates aggregative problems such as inflation and the business cycle within the general Demand for and Supply of Apples framework of „microeconomic‟ theory. If Price of Apple these developments succeed, the term „macroeconomic‟ will simply disappear from S use and the modifier „micro‟ will become superfluous.” P* Robert Lucas (1987) D Quantity of Apples Q* Behind Demand and Supply Curves …. Equilibrium As a Point The Marginal Utilities of All the Consumers (j=1,…,J) out of Consuming Apples are Equal to the Price.
    [Show full text]
  • The Fair and Laissez-Faire Markets: from a Neoliberal Laissez- Faire Baseline to a Fair Market
    Pursuit - The Journal of Undergraduate Research at The University of Tennessee Volume 5 Issue 1 Article 8 June 2014 The Fair and Laissez-Faire Markets: From a Neoliberal Laissez- Faire Baseline to a Fair Market Eric L. Dixon University of Tennessee, Knoxville, [email protected] Follow this and additional works at: https://trace.tennessee.edu/pursuit Part of the Economic Policy Commons, Economic Theory Commons, Ethics and Political Philosophy Commons, Inequality and Stratification Commons, Political Economy Commons, and the Public Policy Commons Recommended Citation Dixon, Eric L. (2014) "The Fair and Laissez-Faire Markets: From a Neoliberal Laissez-Faire Baseline to a Fair Market," Pursuit - The Journal of Undergraduate Research at The University of Tennessee: Vol. 5 : Iss. 1 , Article 8. Available at: https://trace.tennessee.edu/pursuit/vol5/iss1/8 This Article is brought to you for free and open access by Volunteer, Open Access, Library Journals (VOL Journals), published in partnership with The University of Tennessee (UT) University Libraries. This article has been accepted for inclusion in Pursuit - The Journal of Undergraduate Research at The University of Tennessee by an authorized editor. For more information, please visit https://trace.tennessee.edu/pursuit. The Fair and Laissez-Faire Markets: From a Neoliberal Laissez-Faire Baseline to a Fair Market Cover Page Footnote I would like to thank David Reidy, Jon Garthoff, and especially Jon Shefner for their continued assistance of my studies in political economy and political philosophy. I would also like to thank my friends and family for their unconditional support. This article is available in Pursuit - The Journal of Undergraduate Research at The University of Tennessee: https://trace.tennessee.edu/pursuit/vol5/iss1/8 Pursuit: The Journal of Undergraduate Research at the University of Tennessee Copyright © The University of Tennessee PURSUIT trace.tennessee.edu/pursuit Fair & Laissez-Faire Markets: From a laissez-faire baseline to a fair market conception ERIC L.
    [Show full text]
  • Survey of Self-Play in Reinforcement Learning
    SURVEY OF SELF-PLAY IN REINFORCEMENT LEARNING APREPRINT Anthony DiGiovanni1 and Ethan Zell2 Departments of Statistics1 & Mathematics2 University of Michigan {adigi,ezell}@umich.edu July 8, 2021 ABSTRACT In reinforcement learning (RL), the term self-play describes a kind of multi-agent learning (MAL) that deploys an algorithm against copies of itself to test compatibility in various stochastic environments. As is typical in MAL, the literature draws heavily from well-established concepts in classical game theory and so this survey quickly reviews some fundamental concepts. In what follows, we present a brief survey of self-play literature, its major themes, criteria, and techniques, and then conclude with an assessment of current shortfalls of the literature as well as suggestions for future directions. 1 Introduction and Background Multi-agent learning (MAL) research aims to study interacting systems of agents in a shared environment, the incentives that govern the agents’ behavior, and the optimal way to behave in such environments. As we will see, the definitions of “optimality,” “environment,” and even “incentive” are crucial to developing useful problem statements and powerful solutions. Several agendas with distinct objectives and evaluation criteria have been developed for MAL [19]. From the perspective of online and reinforcement learning (RL), it is natural to formulate MAL as design of algorithms that can achieve a user’s goals optimally (or minimize regret), conditional on an environment induced by the actions taken by other algorithms. Model classes are constructed for this induced environment, on a spectrum from fully stochastic and equivalent to a Markov decision process (MDP) [4], to fully adversarial and unpredictable [3].
    [Show full text]
  • The Two Faces of Emergence in Economics
    Swarthmore College Works Economics Faculty Works Economics 2007 The Two Faces Of Emergence In Economics Mark Kuperberg Swarthmore College, [email protected] Follow this and additional works at: https://works.swarthmore.edu/fac-economics Part of the Economics Commons Let us know how access to these works benefits ouy Recommended Citation Mark Kuperberg. (2007). "The Two Faces Of Emergence In Economics". Soundings. Volume 90, Issue 1/2. 49-63. https://works.swarthmore.edu/fac-economics/20 This work is brought to you for free by Swarthmore College Libraries' Works. It has been accepted for inclusion in Economics Faculty Works by an authorized administrator of Works. For more information, please contact [email protected]. THE TWO FACES OF EMERGENCE IN ECONOMICS Author(s): Mark Kuperberg Source: Soundings: An Interdisciplinary Journal, Vol. 90, No. 1/2, Emergence Theory (Spring/Summer 2007), pp. 49-63 Published by: Penn State University Press Stable URL: http://www.jstor.org/stable/41179190 Accessed: 04-10-2017 18:47 UTC REFERENCES Linked references are available on JSTOR for this article: http://www.jstor.org/stable/41179190?seq=1&cid=pdf-reference#references_tab_contents You may need to log in to JSTOR to access the linked references. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about
    [Show full text]