The lonely robot
“In economics the whole idea that the free market is an efficient system is coming under serious attack. Over the past five years many of the Nobel prices for economics have been awarded for research that shows that markets do not create stability or order. What Adam Smith called the invisible hand, is invisible, because it isn’t actually there, and politicians do have a powerful role to play in controlling the markets.
And a new discipline called behavioral economics is being studying whether people really do behave as the simplified model says they do.
Their studies showed that only two groups in society actually behaved in a rational self-interested way in all experimental situations:
One is the economists themselves, the other is psychopaths.”
Curtis blogs here.