Company Quote by Paul Ormerod
“The model of competitive equilibrium which has been discussed so far is set in a timeless environment. People and companies all operate in a world in which there is no future and hence no uncertainty.”
About This Quote
Source Paper: Competitive Equilibrium and Time, 2015
Traditional equilibrium models ignore future uncertainty, assuming a static, timeless market environment.
In simple terms: Models often omit future risks.
Consider uncertainty in economic analysis.
Themes
Mood
Type
When to use this quote
- policy planning
- financial forecasting
- business strategy
Key Concepts
Questions to Reflect On
- How would you incorporate future risk?
- What are the limits of timeless models?
Real‑world markets are dynamic, making static models less predictive.