Difference between revisions of "Paul Lang's Favorite Theorem" - Rhea

Revision as of 16:51, 21 January 2009

@@ Line 1: / Line 1: @@
 [[Category:MA453Spring2009Walther]]
-My favorite theorem is Adam Smith's Theory of the Invisible Hand - everyone acts to his/her own self interest. His theory was unveiled in the Wealth of Nations and has been enormously influential in economics, specifically on free trade markets and game theory (Prisoner's Dilemma). Here are a couple famous short excerpts below:
-"He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good."
-"Man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this. Give me what I want, and you shall have this which you want, is the meaning of every such offer; and it is the manner that we obtain from one another the far greater part of those good offices which we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love."

Difference between revisions of "Paul Lang's Favorite Theorem" - Rhea

Revision as of 16:51, 21 January 2009

Alumni Liaison