Thursday, January 6, 2011

Action Axiom

Mises' grounds economics upon the action axiom which is the fundamental and universal truth that individual men exist and act by making purposive choices among alternatives. Upon this axiom, Mises deduces the entire systematic structure of economic theory. Mises' advocacy of free markets and his opposition to statism stems from his analysis of the nature and consequences of freely acting individuals compared to the nature of government and the consequences brought about by government intervention.
One version of Action Axiom I found on the web. Quants are not against this, we would add that theaction has some fixed ability to modify the environment he observes.  The agent is matching a polynomial form from his limited set to bound some external event sequences.

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