New Negative Feedback Mechanism of Market Economy Operation, Econometric Ethics and Two Theorems of Welfare Economics

Abstract

In the previous article "Prediction on Clopidogrel's Abnormal Behaviors and Pharmacobehavioral Economics", the authors propose to establish new disciplines such as pharmacobehavioral economics. Although the establishment of a new discipline normally brings about a breakthrough in the development of the field, from December 2012 to July 2021, this paper had been rejected by many journals, and the correct results of empirical studies turned into a hot potato. During this process, both invisible hand and visible hand became barriers to the formal publication of this article, justice and morality were ignored,and the market and regulators failed. So far, for clopidogrel whose global cumulative sales have exceeded $90 billion, the treatment guidelines based on the incorrect results of Phase III CAPRIE cannot be corrected, and the global medical economic resources have been excessively consumed for a long time. Based on the prediction function combined with pharmacobehavioral economics or medical-behavioral economics and game theory, within one day 8 years ago, from massive data, we quickly found that there were serious evidence-based medicine data errors and illogical in another drug with abnormal behavior. The author designs a new economic system, which is the new negative feedback mechanism of market economy operation when the market and the government or regulation failed at the same time. The process of disclosing the illogical data and wrong results of the CAPRIE trial, which cannot be officially published so far, shows that absolute neoliberal economics should sometimes be just a skilled method or methodology for high IQ people or interest groups to transfer wealth as much as possible under the banner of freedom economics. In economic activities, "general disequilibrium theory", rather than "general equilibrium theory", widely exists in market economic activities. Therefore, it can be seen that the market economy in which capital participates is usually asymmetric, and asymmetric economics is the mainstream of market economy. In a discipline, the accurate interpretation of terms is crucial for communication of the discipline. It is suggested to replace "invisible hand" with "profit driven hand". This shows that in a free economy, even though there are thorough laws and institutions in place, invisible hand and visible hand will derail public interests, lead to more waste of public resources, bring more risk to patients and push back the public utilities instead of being necessarily able to accelerate the progress of public utilities.