Posted by: Armel | August 6, 2009

Game Theory and Economic Development

Game-Theory  Farmer Africa

 

Here’s what we know for sure: all economic theories are explained by research studies on market participant’s patterns, and the outcome of every theory clearly set a winning side and a losing counterpart.

If an economic theory that was used and worked elsewhere is the one size fits all “magic fix” to economic growth in every country on this planet, I don’t think we will be where we are at this moment in time.

What if the intricacies of any chosen theory are implicitly designed to have a winner and a loser (obviously right)? In the current environment of global commerce, the rules of the trade are not equal. Those on the good side of the trade, are disproportionately taking benefits from the exchange while those on the bad side, will continue to lose in perpetuity because the winner will continue to set the rules of the game. 

So, the answer could then be how to switch to the other side instead of perfecting concepts designed by the winning side to maintain their position while at the same time, keeping the same at the bottom of the ladder. 

To catch my drift, I recommend reading False Economy: A Surprising Economic History of the World by Alan Beattie and other books on Game Theory and Applied Economics

Armel Njeunou

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