...by Daniel Szego
quote
"Simplicity is the ultimate sophistication."
Leonardo da Vinci

Sunday, October 29, 2017

The rebirth of classical numerical economic theories at cryptoecomomics


Classical numerical economic theories, like microeconomics or game theory were once vital elements of every economic analysis. However in the meantime, even if these theories are part of the general university education, they seem to be less popular comparing to more "human-oriented" areas, like behavior based models. However, it is foreseen that these theories will have a rebirth in the area of public Blockchain and other distributed ledger technologies, implying the theoretical area as cryptoeconomics. 

In this area, we can actually work pretty well with the homo-economicus assumptions: we basically dealt with actors that are either humans, or simply computer algorithms, that do not know and do not trust each other, so the major motivation of the cooperation is simply the profit maximization.