Why Does It Take Just A Few People To Act Rationally For The Standard Model To Hold?

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Why Does It Take Just A Few People To Act Rationally For The Standard Model To Hold?

If "money is left on the table," the few people who act rationally will take advantage of the irrationality of others, and they will take that money off the table. A Nash equilibrium requires that only a small proportion of players act rationally. Those who act irrationally will always lose to the rational players. This leaves only rational players, so the standard model holds in the long run. Once people see that all other players are acting rationally (selfishly), they will also adopt a rational approach.
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If "money is left on the table," the few people who act rationally will take advantage of the irrationality of others, and they will take that money off the table.

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