Monday, June 29, 2009

Thomas Crombi Schelling on Economics is not like engineering

In an interview to The Business Line Prof Schelling says:

Where do you see the future of economics as a subject?

I think what they are calling behavioural economics is, on the whole, pretty good stuff. I am a great believer in theory but we have to recognise the limitations of markets, competition and so on.

There can be huge departures from what is defined as rationality. So much depends on what people believe will happen. Economics is not like engineering.

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