[ExI] Psychology of markets explanations

painlord2k at libero.it painlord2k at libero.it
Tue Jun 2 15:28:11 UTC 2009

Il 02/06/2009 16.48, dan_ust at yahoo.com ha scritto:
> --- On Sat, 5/30/09, painlord2k at libero.it<painlord2k at libero.it>
> wrote:

>> When will be have psychology of physics explanations? For example,
>> if people believed that air planes don't work, there would not be
>> air planes flying, so the laws of aerodynamics could be told to not
>> work, because air planes can not fly if people don't believe they
>> will fly.

>> The supply-demand curve work perfectly with rational agents.

> I disagree.  The law applies to all agents.

I agree with you.

> (This is in contradistinction to the use of "rational" by Mises and
> Rothbard.  Their use in this context is not to describe someone as
> following the rules of logic, but rather as someone who acts
> purposefully.  In this sense, all agents in a market are rational:
> they are all acting to advance their goals.  As economists, we cannot
> judge their goals, but only explain their actions in terms of them.)

Exactly. If they have goals and they act purposely to realize them, they 
are "rational". My take is that agents without purpose or unable to act 
purposely to realize them are "irrational".
They have not any priority in their goal, if they have goal. In this, 
they are simply random machine.

What I was criticizing is the concept expressed that psychology can 
govern directly the outcome of the market, when it can indirectly govern 
(at best) the interpretation of the data gathered and the goals chosen.

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