Bryan Caplan likes “trembling hand perfect” equilibriums, but identifies the concept as an obscure academic concept…and indeed it is. Then he offers a challenge:

My challenge for other econ bloggers: Name yours. What’s your favorite obscure-but-genuinely-enlightening academic economic concept?

I have written about mine fairly extensively.

The G-R Conditions of Wealth-Creating Economic Activity

  1. Irreversibility: All economic transactions that create value are thermodynamically irreversible.
  2. Entropy: All transactions that create value reduce entropy locally within the economy and increase entropy globally.
  3. Fitness: All transactions that create value produce goods/services that are fit for human purposes.
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