/sci/ - Science & Math

Yeah, no problem at all with those axioms... I'll be right back after I figure out all of the positive qualities in this glass of juice.

Oh boy, another frictionless Economy discussion.

>>2983236
I agree with this, but would throw in Linear Logics, (n,r)-categories, and the Goodwillie Calculus of Functors. (If I was being really specific.)

>>2940768
No, it rather seems that Economists don't understand the limitations of models. I'll refer once again to Robert Merton's wonderful experience at Long-Term Capital Management.

Aggregate consumer demand is an attempt to take the intuitive fuzzy notion of individual consumer demand (which is itself a questionable notion given the continuing developments of better models for individual consumer behavior) and then to "aggregate" it by "summing it up".

This process rests on a several simplifications about the individual agents including homogeneity assumptions, rationality, etc. Without those assumptions the act of summing is not well-defined, and even when it is well-defined the resulting 'aggregate demand curve' does not conform to our usual naive notions about what 'demand' means.