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| | {{a|risk|}} |
| *[[Complexity]] | | *[[Complexity]] |
| *[[Fear]] | | *[[Fear]] |
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| And what can we do to fix it? <br> | | And what can we do to fix it? <br> |
| There is no perfect marketplace. <br> | | There is no perfect marketplace. <br> |
| ===Survival of the fittest=== | | ==={{risk|Ecosystem}}=== |
| ====[[Nomological machine]]s====
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| *They model reality by proxy, they don’t describe it.
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| *They are idealised shorthand, and depend for their coherence on key simplifications that do not in fact appear in nature: no friction, symmetry, no supervening causes, homogeneity, infinite elasticity etc.
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| ====Market models====
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| Modeling how human beings behave in the absence of rules. <br>
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| =====Model 1: {{author|Adam Smith}}’s {{br|The Wealth of Nations}}=====
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| Assumes qualities of human interaction that do not in practice exist:
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| *'''A level playing field''': perfect equality, capability, opportunity and symmetry of information between participants.<br>
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| *'''Rational participants''': players act in an economically rational way <br>
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| *'''Information is free''': Information is universally, immediately available, and therefore has no value (so there is no value in keeping it)
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| *'''No collusion''': Corollary of the Level playing field: participants are honest, do not take advantage of natural advantages and do not conspire to subvert market conditions.
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| | |
| =====Model 2: {{author|Thomas Hobbes}}’ {{br|Leviathan}}=====
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| Survival of the most brutish. Nature is red in tooth and claw. <br>
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| *No cooperation
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| *No altruism
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| *No trust
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| | |
| =====Shortcomings with each model===== | | =====Shortcomings with each model===== |
| Neither model describes '''not''' an equilibrium state among human beings. | | Neither model describes '''not''' an equilibrium state among human beings. |