“Markets fail; let’s use markets”

That’s a capsule summary of the George Mason University economics department (HT: Brian Hollar): Adjunct professor Arnold Kling offered a terser précis of the GMU way. “My simple way of describing it is that at Chicago they say, ‘Markets work; let’s use markets.’ At Harvard and MIT they say, ‘Markets fail; let’s use government.’ And at George Mason, we say, ‘Markets fail; let’s use markets.’” … Continue reading “Markets fail; let’s use markets”

Prisoners’ Dilemmas

A few days ago I talked about flaccid strategies for iterated prisoners’ dilemmas, noting that strategies without retaliation cannot win. I remarked: Many Western leaders seem committed not only to avoiding retaliation but to responding to defection on an opponent’s part with forgiveness and even more extensive cooperation. [Emphasis added.] That inspires a further thought. Robert Alexrod and others have investigated strategies for iterated prisoners’ … Continue reading Prisoners’ Dilemmas