Micro economists using game theory ASSUME competition and then use game theory to see how things work out -- which turns out to be competition.
In my piece about why electric deregulation can't work I read a lot of (and quoted) Lester Telser. He does NOT assume competition and discovers that collusion or cooperation is necessary for good outcomes for society. Regulation of the collusion or cooperation is required for that good outcome.
Game theory as used by economists is the same game as neo-classical micro, which a game of hide the ball.
Gene Coyle
michael perelman wrote:
Maybe they should have checked with the Pentagon. You all know the original purpose.
Game theory always seemed like a rather sterile exericize in the economics literature, but micro economists seem to like it.
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Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901
