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However, in praxis, not every participant in an economic system is a perfect player in the sense of game theory. Take for instance the history of the London Und
by masswerk 4y ago
However, in praxis, not every participant in an economic system is a perfect player in the sense of game theory. Take for instance the history of the London Underground and its rivaling companies and directors. There are several instances, where a player maintained a position detrimental both to their own economy (as in profits and strategic position) and to the entire system (as in gains that may be secured in the future), as other motives take over. (E.g., hurting another player gains top priority, even if the damages inflicted to the respective own position exceeds the damages inflicted to the competing player. Even to the extent of losing that position altogether, as in being fired as the director.) Notably, this was a system with multiple controlling parties, as directors and boards, acts of parliament, financiers, etc, still, this couldn't stop this kind of behavior. (E.g., blocking closing the circle line is a prime example.)
- masswerk 4y agoApparently, this (or the intent of this) requires an explanation. This is a comment on the factuality of statements like, "Except that Samuel wants to keep his place," and a reminder that game theory is an interesting thought experiment, but not an accurate description of human social behavior. There's nothing in the rules or the setup of a "game" that would determine moves as actually observed and about anything may happen. Including even worse outcomes than pictured here. At best, it describes an inherent tendency.