When Game Theory Takes Us on a Ride

Dialogues économiques
OCTOBER 27, 2020
According to game theory, free competition is not always ideal for society. Economists Gaëtan Fournier and Marco Scarsini use this perspective to study the spatial competition between several retailers. The retailers choose the location of their business to maximize their profits. According to the researchers’ model, pursuing an individual profit leads to stable but undesirable situations for the common good.
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