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Re: games people play



Chapter 5 of Przeworski's "Capitalism and Social Democracy"
(1985 CUP) is an excellent example of a radical use of game
theory.  Przeworski investigates the conditions under which
capitalists and workers will compromise (e.g., on Keynesian
inspired stabilization policies, a Stackelberg solution)
rather than workers finding it "best to be highly militant"
and capitalists finding it "optimal to disinvest" (a Nash
equilibrium) (pp. 192-3).
Edwin Dickens




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