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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (10392)	12/20/2007 6:19:43 PM
From: Wildstar	Read Replies (1) \| Respond to of 24758

Nah, iterated Prisoner's Dilemma is one example. No socialism involved.

To: ahhaha who wrote (10392)	12/21/2007 10:38:08 AM
From: CapitalistHogg™	Read Replies (2) \| Respond to of 24758

hmmmm Let's take the example of two drug dealers; Drug dealer A is a street thug who deals on the corner for his boss the leader of the local gang. His buyers are any schlep who drives up in their car and hands over money. In this scenario Drug dealer A has complete control over his 'corner' and is free to enforce any action he so desires on his customers. Meaning if he feels compelled to rob his customers instead of giving them drugs that is his prerogative. His boss still gets his cut of the cash and they have more product to sell later. Since there is a never ending stream of different customers the incentive to 'rip off' the occasional dumbass suburbanite is very high. There is no reason for cooperation with every customer that drives up to his corner. One day a ripped customer comes back and shoots Drug Dealer A in the head. Drug Dealer B is slightly more sophisticated. He deals with a low profile and out of his house to the same people year in and year out. It is in his best interest to coordinate and cooperate with his customers because he knows that if he rips them off there could very well be consequences for his actions. a. they could call the police and have him arrested. b. they could retaliate with violence and/or theft. or c. drug dealer B would have to go out and find a new customer thereby exposing himself to unknown variables (idiot big mouth, thief etc) plus why take the time to establish a new relationship when the one you have is working just fine? Drug dealer B is cooperating and coordinating his efforts with his customers...he is looking out not only for his best interests but also for the best interest of the group. Free markets work BEST when one looks out not only for their own interest but for the best interest of the group. Adam Smith was wrong. PS(I used a black market example because IMO black markets are the ultimate form of capitalism)