a flaw in game theory

=flawed =sociology =game theory

 

 

Conventional game theory has an important flaw.

 

In games, strategies are supposed to converge to a Nash equilibrium. This can be seen in simple games. But in the real world, that's not what we see.

 

People in different areas have different cultures, even if geographic conditions are similar. There may be different subcultures living in the same area. Cultures can go in cycles, fashions can evolve over time without change in underlying conditions, and purely symbolic issues can have large social effects.

 

This conflict can be resolved by considering agents that can simulate other agents. In the real world, people spend a lot of mental effort on predicting what other people will do. There are also many shibboleths people use to test if other people are of a known type.

 

This change makes much of conventional game theory irrelevant.

 

 

 



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