Friday, December 28, 2012

Why they want to go over the cliff | POLITICO

This is an interesting explanation for why no one in Washington seems too concerned about going over the fiscal cliff:
"It’s a Nash equilibrium. John Nash, subject of “A Beautiful Mind,” the Oscar-winning film that revolved around game theory, explained how players act in a multiplayer game. Put simply, if each player understands his adversaries’ strategies, no one will alter their own course. Right now, Obama, Boehner and Reid are locked in on a course for the cliff, and there’s no obvious solution that would make any of them switch directions."

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