Heavy Lifting - thoughts and web finds by an economist
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Tuesday, November 09, 2010
On page 1313 (actual page 14) of the current issue of the American Economic Review has this very intuitive and, of course, easy to implement statement:
The optimal donation aj by a citizen satisfies the first-order condition, which in a symmetric equilibrium is
Does the author really think that individuals behave according to this equation? If not, then why should we? If so, then what?
I don't see your point. Of course we believe that people behave according to our equations.Post a Comment
In fact, I've seen equations in some of your papers describing how you think people behave. (To be fair, in a couple, I put 'em there.)
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