Source: EconLog
by Jon Murphy
“Whenever I think about things from an economic perspective, I start with the assumption that the present state of affairs is efficient (my null hypothesis, if you will). That is to say, I start with the assumption that all profit opportunities have been eaten up and, at least at the present time, there are no failures in the market. Then I consider how likely it is that such an assumption is an approximate representation of reality. That is where methodological individualism and the economic way of thinking come in.” (01/22/26)
https://www.econlib.org/econlog/marginal-returns-of-regulation