🚀 go-pugleaf

fbonsignore@beethoven.com wrote:
> Classical theory states that we act as maximiazing machines acting
> through and by a utility function with certain characteristics. From
> this basic setup several conclusions are reached, one of them most
> important being that of specialization as a way to maximize production.
> Men are assumed to *naturally*, that is, through the workings of the
> economic system, to achieve a level of specialization that drives
> production to the maximum, even to the level of sholw countries! (Smith
> & Ricardo)
>
> But, this is a very ideal setup, indeed. How can we make it work in the
> presence of generalists? To make it work as specified, the underlying
> homo *must* be very ordered! In other words, the principle of
> specialization to maximize production implies a national character,
> namely, that of the Nation which gave birth to this theory. For other
> people itr may not work at all, simply because they won't achieve that
> level of specialization.
>
> In terms of utility functions, it is a statement on the size of the
> categories of indifference! Ordered people would have very narrow
> levels of utility...
> Danilo J. BOnsignore then Fabrizio J BOnsignore again Danilo J.
> Bonsignore

"Narrow" utility functions means that for any given level of utility,
few goods would fall into that indifference category, and the lower the
utility level the wider will be that category, that is, the more goods
will be considered indifferent at that level. In the case of countries,
this will be true for countries whose comparative endowement lets them
be efficient in single or few products, while countries with lots of
endowements will have wider indifference categories.

Danilo J. Bonsignore then Fabrizio J. Bonsignore again Danilo J.
BOnsignore
(to their disappointment, I can perfectly well get a female couple
without recurring to violence... or deceit.)