D-square
Digest on “blackboard economics” which should also give us bloggers pause for thought:
But the real error was just a pure and simple case of economists’ arrogance, the belief that as a
clear-thinking outsider with a training in constrained optimisation, I would be able to design a much
better way of going about things than the people actually doing the job. This is the sort of
“blackboard economics” that Ronald Coase always railed against, which is why he’s a bit of a hero of
mine and it’s genuinely saddening to me that he blotted his copybook so badly over the lighthouse
business.