sophiaw1926 on Nostr: Thanks Patrick :) The second part just meant if one firm defects first for like say a ...
Thanks Patrick :)
The second part just meant if one firm defects first for like say a sum of 900 in a one shot game, then trust is broken and the two firms end up competing indefinitely for like say a figure of 400 in a Nash equilibrium and then you apply say a present day value (due to inflation and time value on money)of that sum which means you have to discount between 0 and 1, so maybe it is like .8. So if your cooperation figure is higher say 500, well if you discount 500 x .8 =400 vs 400 x .8=320 and then you times that by the number of repeated interactions you think there will be. In the long-term, you’ll find that cooperation wins. It’s basically this scene in the godfather:
https://youtu.be/D6me2-OurCw
FYI, jb55 (npub1xts…kk5s) is auto maths a thing now. I put a calculation in and Damus auto corrected or my phone did, not sure. That’s a first for me and it is so much better than word correction, at least numbers don’t lie and usually only one answer.
The second part just meant if one firm defects first for like say a sum of 900 in a one shot game, then trust is broken and the two firms end up competing indefinitely for like say a figure of 400 in a Nash equilibrium and then you apply say a present day value (due to inflation and time value on money)of that sum which means you have to discount between 0 and 1, so maybe it is like .8. So if your cooperation figure is higher say 500, well if you discount 500 x .8 =400 vs 400 x .8=320 and then you times that by the number of repeated interactions you think there will be. In the long-term, you’ll find that cooperation wins. It’s basically this scene in the godfather:
https://youtu.be/D6me2-OurCw
FYI, jb55 (npub1xts…kk5s) is auto maths a thing now. I put a calculation in and Damus auto corrected or my phone did, not sure. That’s a first for me and it is so much better than word correction, at least numbers don’t lie and usually only one answer.