On Equilibrium (1980-1989)

"The equilibrium between supply and demand is achieved only through a reaction against the upsetting of the equilibrium." (David Harvey, "The Limits To Capital", 1982)

"All environmental areas, from the primeval forest to the large city, can be regarded as ecosystems and investigated accordingly, most of the attention being given to the lasting existence and functioning or 'equilibrium' of these systems." (Wolfgang Haber, Universitas: A Quarterly German Review of the Arts and Sciences Vol.26 (2), 1984)

"If a system is in a state of equilibrium (a steady state), then all sub-systems must be in equilibrium. If all sub-systems are in a state of equilibrium, then the system must be in equilibrium." (Barry Clemson, "Cybernetics: A New Management Tool", 1984)

"Multiple discoveries are in fact very common in science and for much the same reason. Developments in related fields with different motivation help one to understand a difficult problem better. Since these developments are public knowledge, many scholars can take advantage of them. It is pleasant to the ego to be first or among the first with a new discovery. However, in this case at least, the evidence is clear that the development of general equilibrium theory would have gone on quite as it did without me." (Kenneth Arrow, 1984)

"Economic theory is devoted to the study of equilibrium positions. The concept of equilibrium is very useful. It allows us to focus on the final outcome rather than the process that leads up to it. But the concept is also very deceptive. It has the aura of something empirical: since the adjustment process is supposed to lead to an equilibrium, an equilibrium position seems somehow implicit in our observations. That is not true. Equilibrium itself has rarely been observed in real life - market prices have a notorious habit of fluctuating." (George Soros, "The Alchemy of Finance: Reading the Mind of the Market", 1987)

"The concept of a general equilibrium has no relevance to the real world (in other words, classical economics is an exercise in futility)." (George Soros, "The Alchemy of Finance: Reading the Mind of the Market", 1987)

"The most abstract conservation laws of physics come into their being in describing equilibrium in the most extreme conditions. They are the most rigorous conservation laws, the last to break down. The more extreme the conditions, the fewer the conserved structures. [...] In a deep sense, we understand the interior of the sun better that the interior of the earth, and the early stages of the big bang best of all." (Frank Wilczek, "Longing for the Harmonies: Themes and Variations from Modern Physics", 1987)

"When loops are present, the network is no longer singly connected and local propagation schemes will invariably run into trouble. [...] If we ignore the existence of loops and permit the nodes to continue communicating with each other as if the network were singly connected, messages may circulate indefinitely around the loops and process may not converges to a stable equilibrium. […] Such oscillations do not normally occur in probabilistic networks […] which tend to bring all messages to some stable equilibrium as time goes on. However, this asymptotic equilibrium is not coherent, in the sense that it does not represent the posterior probabilities of all nodes of the network." (Judea Pearl, "Probabilistic Reasoning in Intelligent Systems: Networks of Plausible Inference", 1988)