Economic Theory of the «Second Worst»

摘要: Concepts like rational expectations, workable competition, bounded rationa­lity and the second best are often used informally to suggest that imperfectly competitive market outcomes normally very good it is sometimesappropriate restrict competition further achieve even better results. Paul Samuelson’s optimal neoclassical analysis adds plausibility inference, but presumption profoundly misleading because real markets corrupt. In Herbert Simon’s satisficing framework expanded include vicious behavior, bests more plausibly interpreted as «second worsts» comparative merit must be determined with Abram Bergson’s social welfare functions rather than by appeal Pareto ideal.