Megan McArdle – On Burning Boats

Lesson of the Shutdown: Don’t Burn Your Boats

I think it is very good.

A simple lesson of game theory is that you should visibly throw your steering wheel out of the window in a game of chicken. However, this lesson does not incorporate repeated games, echo chambers inside the cars, and primary politics that produce polarization.

The extreme ends up convincing itself that the only thing holding them back is not driving a hard enough bargain.

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