Indonesia | Economics

Friday, September 22, 2006

Adjustable individuals

A quote from a recent acquisition for my library:
The fundamental mistake is in taking the patterns we observe around us as facts of nature. They are not; they are the result of rational individuals adjusting to a particular set of constraints... Change the constraints and, given a little time to adjust, the patterns change.

That's from David Friedman, son of Milton Friedman. Somehow, I have a feeling I'll be referring to this post often in future.

2 Comments:

  • I like this quote - and before I got to the end of it, I was thinking more along the lines of patterns being the result of behaviors. I cannot separate Economics from Behavior in my mind....
    Enjoyed the quote!

    By Blogger KLR, at 9/26/2006 06:45:00 pm  

  • KLR,
    Agree on the last part. Most people don't see the connection between the two -- always believing that economics is merely a science of money (instead of decision making).

    Some of my friends even think it's a science of money-making. Ah, I wish that were true... ;-)

    By Blogger Arya, at 9/26/2006 11:11:00 pm  

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