alt Hacker NewsI think a basic overview of game theory should also discuss Pareto optimality to some extent. You can have 100% of participants operating in a locally-ideal way while still creating problems in aggregate.
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perfect-blue • yesterday at 5:42 PM
Pareto efficiency is a welfare economics concept. In game theory, the closest you can get to that is a Nash equilibrium.
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Tragedy of the commons / bounded rationality for example.
https://en.wikipedia.org/wiki/Tragedy_of_the_commons