Imagine a huge greased bowl. Drop a marble in it. The marble will always roll to the bottom of the bowl.
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Replying to @St_Rev @gabrielduquette
Here the grease represents "no transaction costs"--the landscape isn't sticky. The marble always reaches equilibrium.
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Replying to @St_Rev @gabrielduquette
So the initial position of the marble doesn't matter. That's the "free market version".
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Replying to @St_Rev @gabrielduquette
Now imagine a bowl smeared with sticky mud. The sticky mud is transaction costs--the marble sticks near where it starts.
4:55 PM - 10 Jun 2016
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. Banned in Sweden. SubGenius, Zhuangist, white-hat troll. Defrocked mathematician. Brain problems.