Saturday, 31 August 2013

To discuss the theory of a firm in social choice framework, what is required is the axiom of completeness.  A set of alternative choices where A is  being preferred to B or B to A as the operator or as the generator there is indifference between A and B, there is completeness. The preferences are transitive. If A is preferred to B and B is preferred to C then A is preferred to C. Indifference's are quasi-transitive. If there is indifference between two or more alternatives any alternative can be chosen and this specific choice is indeterminate. Probability can be assigned. Risks are calculated with reasonable expectation considering all the three markets. Sufficiency is then a condition.

Tuesday, 27 August 2013

The optimal level of public expenditure would be a value which is closest to individual preferences contingent upon the specific set of property rights that exist. Individual indifference and preferences are about property right structure and mechanisms to change it as a generator operator behaviour. Social indifferences and the commonality of preferences being considered, Laws which effect group behaviour rendering many other behaviour redundant generate efficient reflection of individual preferences when market crystallizations are sufficient with bounded rationality.Optimality requires an emotional cost depending on the outcome of the decision and cognitive costs which is of the mental processing cost of coming to a decision. The time required for restoration of the third state is the measure of benefit obliquely.

Saturday, 24 August 2013

While discussing Rousseau's rhetoric " Man is born free, but everywhere he is in chains" reference is made to Byron's  Corsair by Russel
             O'er the glad waters of the deep blue sea.
             Our thoughts as boundless and our hearts as free
This freedom of choice runs into trouble if we take into account the four kind of alienation's, Man from man, Man from the means of production, Man from the process of production, Man from the end product as laid out by Marx. Read Yahweh = dialectics, Church = Communist party, Messiah = Marx, Second Coming = Revolution. This is not the spiritual dialectic of Hegel but dialectical materialism. The individual choice from an indifference schedule and social choice from commonality of preferences, leads to the question of theory of the firm, state owned enterprises.