[OPE-L:2975] Re: Okishio and mathematical Economics

Paul Cockshott (wpc@cs.strath.ac.uk)
Fri, 6 Sep 1996 07:02:29 -0700 (PDT)

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>3. I don't think you can get competition to enforce capitalist firms to
>maximize profit, unless you assume a pre-given rationality of maximization
>and predatory behavior. Why do firms squeeze out the maximum profit?
>Because some predator is forcing them to. Well, why is the predator doing
>it? Because another predator is loose. Etc. Sooner or later, you come back
>to the fact that some firm is maximizing profit because that is its
>rationality (which sets the whole process in motion).

I doubt that this is necessary. One could assume initially a random
distribution of behaviours and show that the profit maximising behaviour
was what Maynard Smith calls the evolutionary stable strategy, in that
in a mixed population the profit maximising sub-population would displace
the others.
Paul Cockshott