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I wasn't entirely aware I was conveying sentiments ;) As far as economics goes, my creed tends toward mysterianism (though you correctly deduce I have a soft spot for libertarianism).

I don't think we will make much progress in the field until we make and analyse many actual experiments. Even then I doubt that economics can be usefully understood. It is simply too complex.

I think the best chance of real progress (i.e. something other than rhetoric) is in simulation, or even better, massively multiplayer games. Eve Online is an interesting step in this direction.



We have a lab for experimental economics at our university. The let people play little games for money.


From the little I know about these kind of experiments, they're a good start and useful groundwork, but in my opinion too simple to reveal much about the real thing as a whole. I don't think real insight will be gained until we start to model and analyse large(ish) complex, dynamic systems. I'd be interested to hear if anyone knows of any such attempts.


There has been some analysis of eBay, MMORPGs and related online markets. I know of one study that compared eBay's rules that encourage late bidding to Amazon's rules that manage to get people to bid early. (Amazon extends the deadline after late bids so that at least 20 minutes remain for other bidders to react. This removes the advantages of late bidding.)


Check "The Origin of Wealth" One of the conclusions is precisely that economy is a very complex dynamic system and advance techniques and models need to be built to understand it. Also, our capacity to make predictions is very limited. Free markets can be efficient but sometimes they are not the best mechanism.




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