Contradictions within economic theory. All well known but still important and, I think, not taken as seriously as they should be.

Asher Meir writes: Economists (like me) love models with “rational expectations”. In these models, all agents have mutually consistent expectations of some future economic equilibrium. If everyone expects that the outcome (which can be stochastic) is X, then it will … Continue reading

“As you all know, first prize is a Cadillac El Dorado. Anyone wanna see second prize? Second prize is you’re governor of California. Third prize is you’re fired.”

Ethan Steinberg writes: I thought you might find this funny given your past blog posts about related subjects (Iran & Benford’s law, preregistration, etc). Announcing that an election is fraudulent due to Benford’s law on data that doesn’t even exist … Continue reading