2011/12/06 by Pierre Lescanne, Lescanne, Pierre
Computer Science · Decision Sciences · Economics, Econometrics and Finance · #Computability, Logic, AI Algorithms #Computer Science and Game Theory (cs.GT) #Economic theories and models #FOS: Computer and information sciences #Game Theory and Applications
paper · pdf · doi:10.48550/arxiv.1112.1185
openalex publication_date 2011/12/06 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
The aim of this of this paper is to study infinite games and to prove formally some properties in this framework. As a consequence we show that the behavior (the madness) of people which leads to speculative crashes or escalation can be fully rational. Indeed it proceeds from the statement that resources are infinite. The reasoning is based on the concept of coinduction conceived by computer scientists to model infinite computations and used by economic agents unknowingly. When used consciously, this concept is not as simple as induction and we could paraphrase Newton: "Modeling the madness of people is more difficult than modeling the motion of planets".