In my opinion, Game Theory, which assumes people make rational decisions, might not always be valid; as a result of if every people in the group makes rational decisions, those decision might interfere with others, and the circumstance will end up with inefficiency. Conversely, people should make decisions that are best for not only themselves but also the group. The bad outcome is not necessarily always inevitable. In order to avoid bad aftermath, people, as a group, should always determine what is the best for them and what is the best for the group. For instance, according to the video "Ignore the Blond," if everyone goes for the Blond, they will block each others' ways, and if they subsequently go for the Blond's friends, her friends will give cold shoulder, because no one likes being secondary option; however, if no one goes for the blond, but goes for what is the best for them, each one of them will get a girl. Even though no one gets the blond, each one of them is going what is the best for group.
Eventually, Nash makes Adam Smith theory better by stating that the circumstance will be better outcome if everyone in the group is doing not only the best for themselves but also the best for the group.
No comments:
Post a Comment