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Ben: Good discussion. But game theory is mostly used as a substitute for Walrasian Equilibrium (with its mythical auctioneer). It provide a strategic but partial equilibrium, where industries can collude as well as compete. Making it dynamic as agreements come out in wash. As for the prisoner dilemma. it merely uses the pre-prisoner cop trick to show that having a bit more honor among thieves (cooperation) pays better (less time to serve) than defection (ratting out one's partner in crime). In lots of tests, econ students insist on being rats, ergo the dilemma. Except on the cop shows it is he rats first who rats best.

But all of this has little to do with neoliberalism, which has already morphed into neofeudalism. Better to look at the stratified morality of the Dark Ages.

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Greg Daneke, Emeritus Prof.
Greg Daneke, Emeritus Prof.

Written by Greg Daneke, Emeritus Prof.

Top Economics Writer, Gov. service, corp consulting, & faculty posts (e.g., Mich., Stanford, British Columbia). Piles of scholarly pubs & occasional diatribes.

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