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    These internal dynamics are partly regulated and stabiliz... — Carmelics
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    Home/Democracy & Governance
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    Supports→Stable institutions with relatively transparent rules are key conditions that help people more closely resemble straightforward economic agents, such that classical game theory finds reliable application to them as entire units

    These internal dynamics are partly regulated and stabilized by the wider social games in which coalitions are embedded

    Democracy & GovernanceSocial Contract
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    Democracy & GovernanceSocial Contract

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    SEP: game-theory
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    This phenomenon complicates applications of classical game theory to intelligent animals. However, it clearly doesn’t vitiate it altogether, since people (and other animals) often don’t reverse their preferences. (If this weren’t true, the successful auction models and other s-called ‘mechanism designs’ would be mysterious.) Interestingly, the leading theories that aim to explain why hyperbolic discounters might often behave in accordance with RPT themselves appeal to game theoretic principles.

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