Can we crank this in reverse: given a utility function, design a market that whose representative agent has this utility function?
It seems like trivially, we could just have the market where a singleton agent has the desired utility function. But I wonder if there’s some procedure where we can “peel off” sub-agents within a market and end up at a market composed of the simplest possible sub-agents for some metric of complexity.
Either there is some irreducible complexity there, or maybe there is a Universality theorem proving that we can express any utility function using a market of agents who all have some extremely simple finite state, similar to how we can show any form of computation can be expressed using Turing Machines.
Can we crank this in reverse: given a utility function, design a market that whose representative agent has this utility function?
It seems like trivially, we could just have the market where a singleton agent has the desired utility function. But I wonder if there’s some procedure where we can “peel off” sub-agents within a market and end up at a market composed of the simplest possible sub-agents for some metric of complexity.
Either there is some irreducible complexity there, or maybe there is a Universality theorem proving that we can express any utility function using a market of agents who all have some extremely simple finite state, similar to how we can show any form of computation can be expressed using Turing Machines.