This is a linkpost for https://medium.com/@owenshen/the-ancient-god-who-rules-high-school-e0645b100ae6
By that logic capitalism with its constant competition is highly wasteful.
Surely we can agree that competition usually leads to local maxima and not Pareto-optimal outcomes?
As a student myself, I'm noticing this general system and trying to point how things don't seem to be very good. I think that if we want to do better, acknowledging how incentives are set up is important.
Surely we can agree that competition usually leads to local maxima and not Pareto-optimal outcomes?
In reality? No, we can't.
By the way, there was a fellow named Coase who had something to say about Pareto efficiency...