An Evolutionary Economic Paradigm, with David Sloan Wilson
Musing Mind Podcast
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All Models Are Incorrect, Despite Having Ridiculous Assumptions
Milton Friedman's 1953 positive economics paper concedes that the assumptions of neoclassical economics are ridiculous. But he says, nevertheless, people behave that way and firms behave that way. He actually trots out an evolutionary argument. We call this small world modeling in the paper. If I'm a biologist, I want to know how does a fish select its food? And so I're going to build a model of optimal foraging theory. Before I get very far with it, because of all those simplifying assumptions I make, I better test that against reality - real fat. That's an experiment takes place. Then that modifies the model. There's an authentic dialectic between the model
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