It's funny, I was thinking about game theory applied to economics earlier, as a result of Dani's essay. So, anyway: I have a certain fondness for game theory as

It's funny, I was thinking about game theory applied to economics earlier, as a result of Dani's essay. So, anyway: I have a certain fondness for game theory as an overarching description of some aspects of economics. But it doesn't describe the whole picture. Game theory is great for example if you're trying to understand (or even predict) what'll happen when all parties involved are acting merely in the interests of their profits, and none of them are being especially innovative -- "cheating" in terms of game theory. What will industry Z do when faced with regulatory oversight? Let's ask game theory. At smaller and smaller scales, game theory breaks down due to the greater and greater influences of other aspects of psychology, sociology, and sciences. For example, a business may not act totally rationally in terms of its profits because one or more individuals is more concerned with the business's image.