Did MrBeast Break Economics? Economist Reacts
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- Äas pĆidĂĄn 25. 08. 2024
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Did MrBeast's video on being trapped for 100 days with a stranger break classic game theory?
Watch his video here: âą Survive 100 Days Trapp...
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In short:
The contestants behaved exactly like you'd expect two friends to behave. Regardless of the fact that they're up and coming on their own social media accounts, they would split the money if they saw the other as a friend.
You totally don't need to assume people are selfish, despite the arguments made by critics of economics. Altruistic preferences could explain the outcome too.
Edit. typo
I remembered when I first watched your videos 4 yrs ago to decide whether I should study economics or not, and that time I couldnât really understand most of the videos. But now that I have finished my bachelorâs degree in economics, it feels funny and indeed I am also grateful because I can understand your video right away, alhamdulillah
If they are playing the game thinking they are getting a payout if they choose to split, in your example of 10 grand, then the mixed strategy equilibrium would be ~5% choosing to split, that be it that mr beast didnât spend the last 100 days telling his participants (while not filming) how they have to choose split instead of steal for the content of the video.
OMG. I actually did a normal form game to solve that decision they were making too.
Btw, my former boss at the IRS in Honduras is now pursuing his PhD in Econ at Utah State University. He maybe will become your student someday!
They also have to consider that Mr.Beast values altruistic behavior and likes to engage in random acts of kindness. So there may be an unknown outcome where choosing to share has a hidden benefit that he hasn't revealed yet, and vice versa for stealing. The unknown outcome also needs to be considered.
So, this did not actually break game theory? It was just a different game/model than at first glance.
Yep, basically.
Your last suggestion about how they could achieve a much higher outcome by cooperating and building a future together assumes they are rational agents. But is it true that people always act rational, have complete information and have all the knowledge about how to act effectively. If that isnât the case, is the way we try to solve these games right then?
Great vid
thanks for the video . I studied business but I am a reader of economics and economic history. Indeed, economic history books are mostly Keynesian or "left" leaning. It is difficult to find bibliography that has a different perspective. And they also have problems of not having data and being very interpretive. I don't know if you have read How the world became rich by Koyama, it is a great book. For Latin America you could read Bulmer Thomas (left bias too) although his view is structuralist and he considers that the ISI is the solution (something that failed in Latin America) however it is a very good book with very good data. Another author would be Carlos Parodi but he only writes in Spanish and behind the left by Sebastian edwards .Please continues to recommend books on economic history, it is a very beautiful field and I think it is the one that brings us closest to the truth from an economic perspective. I will read your recommendation, thank you. Im train BJJ to .(Fromthe video âage of american capitalism)
What's so wrong with a left-leaning perspective? Does that invalidate the research and inquiries and such?
If we are to call out political leaning when criticizing academic texts in economics (which I think we should) I think we should do so across the board. I am not myself an economics student but it doesn't take one to realize that the vast amount of economies in the world are not governed by socialist teachings nor are the average economics student ever fully taught them.
I do not claim to be socialist nor communist but neither am I a believer in capitalism. I think we should see the real value of a diverse set of ideas and pick those that help us all the most (that means poor and exploited people too). If that diverse set of ideas leans one way or the other, that's not so much bias as it is what's truly the best.
@@IWouldLikeToRemainAnonymous The left perspective is not a problem, it is a problem not knowing that there are perspectives in the academy of social sciences, because when approaching a text we can take it as truth and not as a perspective (which does not mean that there are no truths). In the academy of social sciences the left bias is approximately 80% (you can review Haidt's book)
Hi Thank for the video,I love your work and the way you talk about economics,I would really like to get in touch with you so I can send you a message. How could I do it? Thank you