----------------- HES POSTING ----------------- 
 
[Posted on behalf of Patrick Gunning. -- RBE] 
 
From: Pat Gunning <[log in to unmask]>  Subject: Re: HES: QUERY -- neoclassical knowledge  
 
Lawrence Boland wrote:  
 
> We have known since Hobbes that while it is ok to use logically 
> valid arguments that include assumptions for which the truth 
> status is unknown, it is not ok to include known false assumptions 
> since modus ponnens would be invalid. In our context, whenever we 
> obtain conclusions (or explanations) by using a model (or theory) 
> that includes known false assumptions, the truth status of those 
> conclusions (or explanations) is unknown: The classic "garbage in, 
> garbage out" syndrome.    
 
Lawrence, how would you deal with my claim that the assumption   
of perfect knowledge is useful as a counterfactual for helping us   
comprehend the nature of the problem of acquiring, using, and   
communicating knowledge? Is this not ok?    
 
Another point about the Marshall quote. Are you sure that the   
quote supports your thesis? I refer to the following segment:   
"Perfect competition requires a perfect knowledge of the state of   
the market; and though no great departure from the actual facts of   
life is involved in assuming this knowledge on the part of dealers   
when we are considering the course of business in Lombard   
Street..."    
 
If one assumes that the Lombard Street residents have practically   
perfect knowledge, then why shouldn't they be elected to the   
parliament and put in charge of running the whole system? As a   
champion of Hayek would quickly answer, the knowledge they   
would need to be successful planners involves complexities that   
evade even the brightest and wisest coalition on Lombard Street.    
 
In this quote, it seems to me that Marshall himself was himself   
operating the garbage machine to which you refer, and doing so   
with a Lombard elitist flair.    
 
Pat Gunning  
Sultan Qaboos University, Oman  
 
------------ FOOTER TO HES POSTING ------------ 
For information, send the message "info HES" to [log in to unmask]