 What is the role of the discussion of economic models?
During the first two-thirds of the twentieth century, this type of rationalization took the form of ever-more complex managed systems, with crisp specification of roles, lines of authority, communication and control. What replaced planning and control in these systems was the myth of perfect markets. This was achieved through a hyper-simplification of human nature, wedded to mathematical modeling of what hyper-simplified selfish rational actors, looking only to their own interests, would do under diverse conditions. Only by concocting such a thin model of humanity−no more than the economists’ utility curve−and neglecting any complexities of social interactions that could not be conveyed through prices, could the appearance of rationalization be maintained.
 Representing decisions with economic models only is not going to give the whole picture
 Representing decisions with economic models only is not going to give the whole picture  The profit margin difference for Toyota versus older car companies can be easily explained  Tracking purchases of conoms over time can give an insight into other economic decisions  Economists have a strong idea of where the flexible points in a system need to be