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What are some real life examples of game theory?

Asked by Rarebear (25192points) October 12th, 2010

I heard a report recently on NPR on how a UN official was wanting all the worlds governments to work together to stabilize their currency. That’s fine if everybody complies, but if one government artificially suppresses the currency to make their products cheaper (like China has been accused), then it won’t work. Either everybody works together, or it’s a currency free-for-all. That’s obviously an oversimplification, but it’s instructive in terms of understanding the economic implications of game theory.

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