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Ask HN: What can markets compute?

3 pointsby ecmendenhallover 12 years ago
Markets generate efficient solutions to enormously complex allocation and optimization problems by aggregating distributed information and sending price signals. What else can they compute? What are their computational properties? Are market systems Turing-complete or universal in some other sense? What is the most interesting research on this subject?

1 comment

001skyover 12 years ago
<i>Markets generate efficient solutions to enormously complex allocation and optimization</i><p>(1) The use of 'efficient' by economists is 'naive'<p>(2) Markets spit out data, nothing else<p>(3) They don't speak, you revise your priors<p>If these points make sense to you, they might be interesting lines of inquiry. If not, you might want to look back on this later.<p>[Edit: This assumes a solid technical understanding, so where you are in your understanding (academic/practical), and what your purpose is for your inquiry, will determine how ambitious you can be. Probably understood, but for the avoidance of doubt, worth stating nevertheless.]
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