Comments on: Making Free Markets Work: Tell No Lies http://www.3sigma.com/making-free-markets-work-tell-no-lies/ Surfing the brink of chaos Wed, 01 Feb 2012 20:47:53 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: The Road to Sanity | Three Sigma Systems http://www.3sigma.com/making-free-markets-work-tell-no-lies/comment-page-1/#comment-1102 The Road to Sanity | Three Sigma Systems Wed, 01 Dec 2010 15:37:11 +0000 http://www.3sigma.com/?p=3059#comment-1102 [...] I said in a previous blog entry, the only caveat I have is that sellers and buyers be required to tell no lies! In his Baseline Scenario blog entry, “The Economics and Politics of Elizabeth Warren“, [...] [...] I said in a previous blog entry, the only caveat I have is that sellers and buyers be required to tell no lies! In his Baseline Scenario blog entry, “The Economics and Politics of Elizabeth Warren“, [...]

]]> By: Cycle of Stupidity | Three Sigma Systems http://www.3sigma.com/making-free-markets-work-tell-no-lies/comment-page-1/#comment-452 Cycle of Stupidity | Three Sigma Systems Tue, 03 Nov 2009 22:25:41 +0000 http://www.3sigma.com/?p=3059#comment-452 [...] in order to gain inequitable advantage, game the system by subverting the rules and regulations of the system and exploiting its [...] [...] in order to gain inequitable advantage, game the system by subverting the rules and regulations of the system and exploiting its [...]

]]> By: john dowd http://www.3sigma.com/making-free-markets-work-tell-no-lies/comment-page-1/#comment-421 john dowd Sun, 01 Nov 2009 19:54:14 +0000 http://www.3sigma.com/?p=3059#comment-421 I'm not sure what Smith was getting at and am not an expert on his work. So your statement that follows the Smith reference is confusing to me. Not sure what you're getting at. I’m not sure what Smith was getting at and am not an expert on his work. So your statement that follows the Smith reference is confusing to me. Not sure what you’re getting at.

]]> By: marc http://www.3sigma.com/making-free-markets-work-tell-no-lies/comment-page-1/#comment-417 marc Sun, 01 Nov 2009 17:26:10 +0000 http://www.3sigma.com/?p=3059#comment-417 You make perfect sense. Therefore, since rational decisions require transparency of information IF it is to produce a greater good, you conclude that Adam Smith's "invisible hand" cannot work as advertised. There can be no rhyme or reason, no "greater good", to outcomes, whether Individual and cumulative, that are based in misleading or spurious information (e.g. lies). You make perfect sense. Therefore, since rational decisions require transparency of information IF it is to produce a greater good, you conclude that Adam Smith’s “invisible hand” cannot work as advertised. There can be no rhyme or reason, no “greater good”, to outcomes, whether Individual and cumulative, that are based in misleading or spurious information (e.g. lies).

]]> By: john dowd http://www.3sigma.com/making-free-markets-work-tell-no-lies/comment-page-1/#comment-414 john dowd Sun, 01 Nov 2009 16:54:08 +0000 http://www.3sigma.com/?p=3059#comment-414 Yes, but when is a lie a lie? There is wide cultural disagreement about this and a large gray area even within our own culture. For example in Thailand, a culture with which I am quite familiar, people will say things to each other that are not strictly true, but not out of some intention to mislead so much as to follow a cultural norm of being polite. It is considered impolite to be too direct and tell people things that will upset them. Thus a Thai may shade the truth (lie) rather than be direct. A Thai will rarely say "no" for example. It is considered impolite and the importance being polite trumps the importance of being strictly truthful. In our culture commercial truths tend to be on a continuum. A seller wants to point out all the positive features of his product or service. Let's say research studies produce varying results after a study of auto mileage capability. In one study Car A gets the best mileage, but not in another. Can the seller of Car A declare truthfully, "Research has shown that Car A gets better mileage than Car B"? This kind of truth is different from saying Car A has better mileage when no research supports the claim (there is no basis for saying A is better). And, that statement is a different kind of statement than saying A is better than B when, in fact, B is better than A by every measure. Yes, but when is a lie a lie? There is wide cultural disagreement about this and a large gray area even within our own culture. For example in Thailand, a culture with which I am quite familiar, people will say things to each other that are not strictly true, but not out of some intention to mislead so much as to follow a cultural norm of being polite. It is considered impolite to be too direct and tell people things that will upset them. Thus a Thai may shade the truth (lie) rather than be direct. A Thai will rarely say “no” for example. It is considered impolite and the importance being polite trumps the importance of being strictly truthful.

In our culture commercial truths tend to be on a continuum. A seller wants to point out all the positive features of his product or service. Let’s say research studies produce varying results after a study of auto mileage capability. In one study Car A gets the best mileage, but not in another. Can the seller of Car A declare truthfully, “Research has shown that Car A gets better mileage than Car B”? This kind of truth is different from saying Car A has better mileage when no research supports the claim (there is no basis for saying A is better). And, that statement is a different kind of statement than saying A is better than B when, in fact, B is better than A by every measure.

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