Game theory and human behaviour. Nash won a faux Nobel prize for his ideas about equilibrium. This economist professor challenges the whole concept of game theory. Do his arguments make sense to you? [larspsyll.wordpress.com]
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Feel free to reply to any comment by clicking the "Reply" button.so if I understand correctly, every person who has won a Nobel Prize for Economics has won a fake prize?
BitFlipper
Level 8
Oct 14, 2019
0
Yes. Any "theory" which makes assumptions falls apart if those assumptions are wrong. In game theory, the assumptions are, " It is assumed players within the game are rational and will strive to maximize their payoffs in the game." The equilibrium of Nash is that both parties will be satisfied. As you can imagine and having dealt with people daily, they are not all rational. In the law it is said that a settlement will leave both parties a little unhappy.
lerlo
Level 8
Oct 14, 2019
1
Wait, "a faux Nobel Prize"??? Explain, please?
AnneWimsey
Level 9
Oct 14, 2019
0
@ToolGuy well, isn't That special......
@ToolGuy yup.
@ToolGuy Should note that Nash was not an economist but a mathematician. Since there is no Nobel award for mathematics Nash was given that faux award for economics.
Economists seized on game theory on their own. If game theory doesn’t work for economics don’t blame Nash. For Nash, game theory was a somewhat trivial thing that he invented in his youth.
That last paragraph sums it up nicely and is persuasive.
“... the more we know, the more we know we do not know.”
WilliamFleming
Level 8
Oct 14, 2019
2
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