Comparison Of The Armchair Economist And Hidden Order
Submitted by on January 1, 1999
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Comparison of the Armchair Economist and Hidden Order
There are several ideas discussed in these two books which have also been discussed in class. In The Armchair Economist, Landsburg addresses several of these topics.
The indifference principle was discussed in chapter four of this book. His definition of this principle is when one thing is preferred to another, people switch to it until it stops being preferred or until everyone has switched to it. Although this exact terminology has not been used in class, the idea has. The related concept learned in class was that when there is positive economic profit in an industry, more firms enter the industry. This causes the supply curve to shift back until zero economic profit is made. The firms in this example switch to a particular industry where economic profit is being made. They continue switching to this...