The Importance of Irreversibility and Learning — Familiar Examples Revisited

Abstract

In the introduction, we formulated what we want to investigate in this book. To get an idea how to do this, we shall have a look at well-known economic examples in chapter 1. This will give us some clues as to the structure that a model should have in order to be useful for our purposes. One of the sections of this chapter deals with a well-known theoretical edifice, the second one with a real- world issue.