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Complexity and endogenous instability
Journal article   Peer reviewed

Complexity and endogenous instability

Sami Al-Suwailem
Research in international business and finance, Vol.30, pp.393-410
01/2014

Abstract

Empathy Fallacy of composition n-Person Prisoner's Dilemma games n-Person zero-sum games Symmetry The Golden Rule
The global financial crisis proved the critical impact of the gap between individual rationality and group rationality. This gap is not supposed to arise in a Neoclassical world, but it frequently arises in a world as complex as ours. The paper explores how endogenous instability might arise due to such a gap, and what behavioral rules might help to mitigate its impact.

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