3 ms·
It may be rational to withdraw money from the bank (which raises risk for everyone), but it would be superrational [1] to buy 10-year bonds from the bank (which
by myhf 4y ago
It may be rational to withdraw money from the bank (which raises risk for everyone), but it would be superrational [1] to buy 10-year bonds from the bank (which lowers risk for everyone). Yes it is dumb for VCs to not understand this basic principle.
[1] https://en.wikipedia.org/wiki/Superrationality https://en.wikipedia.org/wiki/Superrationality
- stickfigure 4y agoThis little round of prisoner's dilemma had thousands of participants. It would be irrational to assume all the other players are superrational.