tag:blogger.com,1999:blog-2830084253401570472.post6793006722310626895..comments2024-03-28T09:22:36.967+13:00Comments on Offsetting Behaviour: The other DeLong quibbleEric Cramptonhttp://www.blogger.com/profile/15831696523324469713noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2830084253401570472.post-89043735544342009682010-12-08T14:15:44.319+13:002010-12-08T14:15:44.319+13:00Continuing with your engine analogy, I think the p...Continuing with your engine analogy, I think the problem for some people is that they expect *all* engines to meet a minimum efficiency threshold. You are maximizing performance for the population of engines, but there are specific engines that are definitively suboptimal.Luisnoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-13898274030916337352010-12-08T12:14:15.614+13:002010-12-08T12:14:15.614+13:00@Nick: And we also don't say an engine fails w...@Nick: And we also don't say an engine fails when it doesn't get 100% transformation of energy into useful work. Engineering efficiency is a blackboard ideal that's useful as a benchmark, but nobody's crazy enough to condemn engineers or to demand government-built engines because of our failure to achieve engineering efficiency...Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-49907001462331653262010-12-08T11:04:14.339+13:002010-12-08T11:04:14.339+13:00My hunch would be to say that the market "fai...My hunch would be to say that the market "fails" when it doesn't do something it could do, but doesn't "fail" when it doesn't do something we have no reason to expect it to do. Like distribute wealth ideally, or make the Ottawa senators win the Stanley Cup.<br /><br />We don't say a car fails when it won't cross the ocean.<br /><br />But my hunch eventually fails too, of course. Since it depends on how much we expect the market to do.Nick Rowehttps://www.blogger.com/profile/04982579343160429422noreply@blogger.com