Are people ever rational? Consider this: You auction off a one-dollar bill to the highest bidder, but you set the rules so that the second highest bidder also has to pay the amount of his last bid, even though he gets nothing. Would people ever enter such an auction? Not only do they, but according to Martin Shubik, the game's inventor, the average winning bid (for a dollar, remember) is $3.40. Many winners report that they bid so high only because their opponent "went completely crazy." This game lies at the intersection of three subjects of eternal fascination: human psychology, morality,...
Are people ever rational? Consider this: You auction off a one-dollar bill to the highest bidder, but you set the rules so that the second highest bid...
What does game theory tell us about rational behavior? Is there such a thing as rational behavior, and if so, is it of any use to us? In this fascinating book, renowned Hungarian economist Laszlo Mero shows how game theory provides insight into such aspects of human psychology as altruism, competition, and politics, as well as its relevance to disparate fields such as physics and evolutionary biology. This ideal guide shows us how mathematics can illuminate the human condition.
What does game theory tell us about rational behavior? Is there such a thing as rational behavior, and if so, is it of any use to us? In this fascinat...
