Economic theory as derived from Adam Smith assumes first that homo economicus acts with perfect optimality on complete information, and second that when many of the species homo economicus do that, their actions add up to the best possible outcome for everybody. Neither of these assumptions stands up long against the evidence. (Adam Smith)

Economic theory as derived from Adam Smith assumes first that homo economicus acts with perfect optimality on complete information, and second that when many of the species homo economicus do that, their actions add up to the best possible outcome for everybody. Neither of these assumptions stands up long against the evidence.

Related topics

adam add best everybody perfect possible second Acts

Related quotes

Probability theory is an ideal tool for formalizing uncertainty in situations where class frequencies are known or where evidence is based on outcomes of a sufficiently long series of independent random experiments. Possibility theory, on the other hand, is ideal for formalizing incomplete information expressed in terms of fuzzy propositions.

George Klir

Neither do I say that man is not immortal. Upon that point I admit that I do not know, and the declarations of all the priests in the world upon that subject give me no light, and do not even tend to add to my information on the subject, because I know that they know that they do not know.

Robert G. Ingersoll

The rural and urban populations does not necessarily drift downward in the process of economic growth: indeed, there is some evidence to suggest that it is stable at best, and tends to widen because per capita productivity in urban pursuits increases more rapidly than in agriculture.

Simon Kuznets

The world has arisen in some way or another. How it originated is the great question, and Darwin's theory, like all other attempts to explain the origin of life, is thus far merely conjectural. I believe he has not even made the best conjecture possible in the present state of our knowledge.

Louis Agassiz

If you put me in charge of the medical research budget, I would cancel all primary research, I would cancel all new trials, for just one year, and I would spend the money exclusively on making sure that we make the best possible use of the clinical evidence that we already have.

Ben Goldacre