I commented on the original post last year regarding the economics angle:
Ryan Kidd and I did an economics literature review a few weeks ago for representative agent stuff, and couldn’t find any results general enough to be meaningful. We did find one paper that proved a market’s utility function couldn’t be of a certain restricted form, but nothing about proving the lack of a coherent utility function in general. A bounty also hasn’t found any such papers.
Based on this lit review and the Wikipedia page and ChatGPT [1], I’m 90% sure that “representative agent” in economics means the idea that the market’s aggregate preferences are similar to the typical individuals’ preferences, and the general question of whether a market has any complete preference ordering does not fall within the scope of the term.
[1] GPT4 says “The representative agent is assumed to behave in a way that represents the average or typical behavior of the group in the aggregate. In macroeconomics, for instance, a representative agent might be used to describe the behavior of all households in an economy.
This modeling approach is used to reduce the complexity of economic models, making them more tractable, but it has also received criticism.”
I commented on the original post last year regarding the economics angle:
Based on this lit review and the Wikipedia page and ChatGPT [1], I’m 90% sure that “representative agent” in economics means the idea that the market’s aggregate preferences are similar to the typical individuals’ preferences, and the general question of whether a market has any complete preference ordering does not fall within the scope of the term.
[1] GPT4 says “The representative agent is assumed to behave in a way that represents the average or typical behavior of the group in the aggregate. In macroeconomics, for instance, a representative agent might be used to describe the behavior of all households in an economy.
This modeling approach is used to reduce the complexity of economic models, making them more tractable, but it has also received criticism.”