Both are problems. Our brains have a tremendous amount of compute and use complex, nuanced, adaptive strategies. The clearest example is how much energy we spe

Both are problems. Our brains have a tremendous amount of compute and use complex, nuanced, adaptive strategies. The clearest example is how much energy we spend modelling other humans' thought processes. We spend so much because a simple permutation of tit-for-tat isn't sufficient - it will lose. It's an arms race to use complex strategies, an outcome which is specifically precluded in the model. I'd argue the fact observable reality is so divergent from the model means we should be skeptical of the applicability of the model.