Paul Streeten: an Appreciation

Abstract

Connoisseurs of Paul Streeten’s style may remember that it did not develop, it appeared like Minerva from the head of Zeus, fully grown and armed. Here is a sample from its first year in print:

We have found grounds to doubt that businessmen try to maximize profit. They have other aims too. Even if they tried, we would be sceptical that they could: they often do not know the relevant data. Even if they tried and could, it is doubtful whether they in fact would maximize profits: where there is uncertainty actual returns diverge from expected returns. This divergence is in the nature of things. The theory which we have been criticizing assumes that businessmen should, would and could behave in a way which may be undesirable, unsuccessful and impossible.

Seven unstated assumptions of the offending theory are then detected, six of them paired to show how three of them contradict the other three.