Sunday, December 9, 2012

Forgiveness, Tit for Tat, and the Coase Theorem

In Aperiomics tit for tat works with V-Bi and Y-Ro because people have the time to respond, when there is little time people can get an advantage in tit for tat by moving with Iv-B or Oy-R high energy short time. For example if there is a race to get to some resources then there is an advantage in starting first, the other tends to miss out. So the fastest one uses a chaotic tactic, perhaps called tit for tit where both try to deceive each other. The reprisals of tit for tat become confused like bluffs in poker where people threaten and promise as a tactic. 

So tit for tat goes wrong in bluff like with mistakes, however in V-Bi and Y-Ro honest mistakes tend to go back to the center of the normal curve whereas chaotic mistakes or deceptions move from boom to bust. The not so nice partners are more chaotic.

http://marginalrevolution.com/marginalrevolution/2012/11/forgiveness-tit-for-tat-and-the-coase-theorem.html


If you find yourself forgiving your partner a lot then something is wrong but forgiving is not always the wrong strategy. What should you do? Tit for tat looks good in the cooperative equilibrium but can go badly wrong with error and mistake. That’s one reason why it’s good to forgive error and even the occasional transgression if you think you can get back on track.
In another study, people who forgave nice partners remained happy with their marriages, while people who forgave not-so-nice partners became less happy.


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