Earlier quoted context omitted.
That's more or less what every quantitative hedge fund out there is doing.
With no reports of funds consistently beating the market in a surprising way. There’s no consistent way to make money. You can exploit small details about how each market works, but in a short time everyone will notice and copy you. It’s like a market without patents. People talk, the trade ideas spread. Like wildfire. Too fast even for a quant to make sense - good managers can tell if a piece of info is hot. No mana…
Building an economy simulator from scratch
111–120 of 217 posts
Re: Building an economy simulator from scratch
#112Re: Building an economy simulator from scratch
#113First, I really appreciate author trying to understand economy better in this way, even though this simulation is quite naive. I think everybody should do that. But as others have noted, it has no concept of capital, private property, and labor market. Therefore, it's not capitalism. It's not anarchism or communism either - it lacks flexibility of workers to do something else, or state planning telling workers to do…
The comment above is an example of an explanatory theory [1]
> An explanatory analysis will try not only to describe the information but also to provide causal relationships between the various data presented.
Simple, yes, but also too simplistic. It isn't very persuasive. For the theory to be useful, then "rich people not wanting that" would have to be causally relevant. The comment above only provides an implied incentive (e.g. rich people would benefit by preventing knowledge dissemination that undermines their status). However, there is no convincing argumentation showing how such incentives play out, much less that they are significant enough to be causally important.
I don't want to reject the entirety of what the commentor above might be trying to say. There are probably aspects that are interesting, surprising, or maybe even troubling. Perhaps there have been documented cases of influential elites shaping economic theories and how they get communicated. Maybe; I haven't studied the history of bias in the field of economics per se. I know of many biases, but so far I've tended to think about them as being largely intellectual oversimplifications rather than designed misdirections.
Let's look to some other 'simple' explanations. One competing theory would be that economists and modelers want to earn status and earn a living. There doesn't have to be any malicious nor coordinated action to explain such behavior. There are many levels of systemic behavior that align with powerful interests without any causal chain. This is sometimes referred to as co-evolution or co-adaptation.
I do want to reject the whole family of (not so good) explanatory theories that fail to give sufficient argumentation for causality.
[1] https://philosophy.stackexchange.com/questions/30827/what-is...
Re: Building an economy simulator from scratch
#114Re: Building an economy simulator from scratch
#115Re: Building an economy simulator from scratch
#116I've long had the fantasy of an economics simulator given dwarf fortress levels of dedication and attention to detail. This might not be it, but it does warm my soul a bit.
Re: Building an economy simulator from scratch
#117Re: Building an economy simulator from scratch
#118The game "Captain of Industry" might be a more complete simulation: https://store.steampowered.com/app/1594320/Captain_of_Indust... Big thread on it from last year here: https://news.ycombinator.com/item?id=31586833
Re: Building an economy simulator from scratch
#119I've long had the fantasy of an economics simulator given dwarf fortress levels of dedication and attention to detail. This might not be it, but it does warm my soul a bit.
Re: Building an economy simulator from scratch
#120https://www.atariarchives.org/basicgames/showpage.php?page=7...
I had a lot of fun playing and modifying that game. Learned a lot about programming with it.