Sean Carroll's Mindscape: Science, Society, Philosophy, Culture, Arts, and Ideas
293 | Doyne Farmer on Chaos, Crashes, and Economic Complexity
Doyne Farmer
So that'd be the standard thing, rational expectations. Now, And then just to finish, you write all that down in equations. You solve what economists call the first order conditions, meaning you set the derivative to zero. And you compute the decisions that maximize utility for all the agents. And then you calculate the economic consequences of those decisions.
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