[ExI] Psychology of markets explanations

[painlord2k at libero.it]

Il 30/05/2009 4.50, Stathis Papaioannou ha scritto:

> The law of supply and demand is an emergent phenomenon supervening on
> social psychology. The supply-demand curve would be affected if people
> prefer to buy more of a product if it is more expensive, for example.

Where do you see this happen?
I never saw this happen in 40 years of my life.

When will be have phycology 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.
Irrational agents will be weeded out of the market as unfit (they will 
pay more than needed and ask less than needed)
Any explanation that say the supply-demand curve is due only to 
psychological causes require that ALL agents must be always irrational 
(a market of fools).
A single rational agent would gain more than all the others and would 
control the market given enough time. Agents that are partially rational 
would have a success proportional to their rationality.


Mirco
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