The futility of utility: how market dynamics marginalize Adam Smith

@article{McCauley1999TheFO,
  title={The futility of utility: how market dynamics marginalize Adam Smith},
  author={Joseph L. McCauley},
  journal={Physica A-statistical Mechanics and Its Applications},
  year={1999},
  volume={285},
  pages={506-538}
}
  • J. McCauley
  • Published 18 November 1999
  • Economics, Physics
  • Physica A-statistical Mechanics and Its Applications
Economic theorizing is based on the postulated, nonempiric notion of utility. Economists assume that prices, dynamics, and market equilibria are supposed to be derived from utility. The results are supposed to represent mathematically the stabilizing action of Adam Smith's invisible hand. In deterministic excess demand dynamics I show the following. A utility function generally does not exist mathematically due to nonintegrable dynamics when production/investment are accounted for, resolving… 
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