CDR: reputation required for evolution of cooperation in _Science_

[Jim Choate]

On Fri, 22 Sep 2000, David Honig wrote:

> 
> Science V 289 8 Sept 2000 p 1773-1775
> 
> "Fairness vs Reason in the Ultimatum Game"
> Nowak, Page, Sigmund
> 
> (from the abstract) 
> 
> "The rational solution, suggested by game theory, is
> for the proposer to offer the smallest possible share
> and for teh responder to accept it.

It is? That isn't any strategy I've ever seen touted as optimal except in 
a 'single' shot market. Which doesn't happen to conform to a 'free' market
model.

I"ll leave it as an excersize on why the 'smallest possible share' price
will inflate and over a reasonably short period will equalize at a 'fair'
price in an interated or multi-vendor market.

I will give one hint:

"Indiviualism and Economic Order"
F.A. Hayek
ISBN 0-226-32093-6

    ____________________________________________________________________

                     He is able who thinks he is able.

                                           Buddha

       The Armadillo Group       ,::////;::-.          James Choate
       Austin, Tx               /:'///// ``::>/|/      ravage at ssz.com
       www.ssz.com            .',  ||||    `/( e\      512-451-7087
                           -====~~mm-'`-```-mm --'-
    --------------------------------------------------------------------