Few months ago I have started an interesting topic about the price formation. This topic is rather important in the contemporary context as it is often claimed (by the media and some lobbyists) that we should "let (the markets) go" (fr. Laissez-faire) with out any regulation or influence from the government. Supposedly free markets would discover the fairest prices and allocate the resources to the most capable. Yet for this to be true, some assumptions must hold. One of these assumptions is the presence of fierce competition and this assumption seems to not hold well as in the repeated games cooperation emerges.
Here we would like to share a 3rd-party material about this. We have already shared some material related to the prisoner's dilemma, but we have not properly discussed how this game is played. The video below, by "This Place", properly introduces this game as well as its iterated version. We invite you to watch the video and contemplate why the cooperation emerges in this setup? How this model could be useful in understanding our society?