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One interpretation of this is that real people care a lot more about fairness than the self-interested ﾃδ｢ﾃつ?ﾃつ彳conomic manﾃδ｢ﾃつ?ﾃつ of the textbooks does. Another, explored by Gale, Binmore, Samuelson, and others, is that we are self-interested but not all-knowing. Humans seldom make optimal choices, but we do learn, from playing the game and from similar experiences in life, what we can get away with. Itﾃδ｢ﾃつ?ﾃつ冱 an evolutionary process ﾃδ｢ﾃつ?ﾃつ one that, if repeated enough times under exactly the same circumstances might lead to an optimal result but under more realistic conditions is more likely to oscillate between different norms/conventions/equilibria.ﾃδづつ? ﾃδ｢ﾃつ?ﾃつ廬f ﾃδ｢ﾃつ?ﾃつｦ the players sometimes experiment or make mistakes,ﾃδ｢ﾃつ?ﾃつ wrote H. Peyton Young, whom I cited at the beginning of this piece, ﾃδ｢ﾃつ?ﾃつ徼hen society occasionally switches from one convention to another.ﾃδ｢ﾃつ?ﾃつ I donﾃδ｢ﾃつ?ﾃつ冲 get the sense that anyone has figured how to build this realization into a reliable predictive model ﾃδ｢ﾃつ?ﾃつ no game theorist is going to be able to tell you with great confidence how the budget standoff will play out. But the very exercise of looking at the current showdown as a game in which the players have limited knowledge but are able to learn illuminates a lot. |
