Economic and Game Theory
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Your points have important insights for me since I use repeated prisoner's dilemma game in my thesis. I argue that international policy cooperation will prevail in the future since the nation state endlessly face with each other on policy issue which have spillover effects on other economies. Then, the long run equilibrium will be the coordination of all fiscal and monetary policies. Tit for tat strategy plays the crucial role in this regard. Nevertheless, your point is very crucial by arguing that,
"The unfortunate consequence of this is that if enough players drift into altruism, the "selfish" strategy becomes the best one. Indeed, Foster and Young (1990) show that for this reason, the selfish strategy emerges as the unique long-run survivor of evolutionary competition."
I guess this is one of the scenario for the future that Hobbesian world will come again.
However, do not you think that as far as players concern with their future well-beings, selfish behaviours will be pend-up. [Manage messages]