Wednesday, July 21, 2010

George Gilder On Game Theory

Luke Ford writes

I got home and returned to George Gilder’s book, The Israel Test.

I’m fascinated by its description of game theory (from pages 194-200).

If you are unlikely to have future transactions with somebody, the rational policy is to be predatory. Get all you can get.

The more often you expect to interact with somebody, the more incentive you have to treat them well.

That’s Orthodox Judaism. It is a small world. You repeatedly run into the same people. You have a high incentive to treat them well.