25 October 2010 - limited rationality 1

“Limited rationality” is a technical term meaning, “well, no, on closer inspection it turns out that we’re not all the Delphic Oracle.” Of course, mathematicians have always known that the rationals are dense, and even economists realized it decades ago, but fortuitously, the equations are easier to solve for IQ equals infinity than for IQ maybe sort of close to 100.

This arbitrage opportunity will not wait forever. As a person who actually is the Delphic Oracle (you may have noticed the cryptic pronouncements), when I become king of the world I will purify the situation so that economics becomes theoretically tractable. I’ll set everybody else’s IQ to zero.