One of the assumptions of game theory: Parties behave rationally and act according to their preferences.
Eg. Two ice creams are offered to you. You can take either chocolate or strawberry. Just presume that you prefer chocolate. Rationally, you would pick the chocolate ice cream.
However, there are people out there who would choose strawberry ice cream over chocolate despite the fact that they love chocolate ice cream. Why is this so? Are they irrational or insane people?
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The answer is no. This is because choosing the strawberry ice cream would probably give them the personal benefit of achieving something more important. Eventually, you gain more than what you lose. Therefore, these people are actually very rational people. For a small sacrifice, they gain much more. They look at the big picture.
Anyone ever find themselves in this situation?
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I've always ended up asking myself why did I choose "strawberry ice cream". Perhaps I've got to step back and remind myself to look at the big picture.
*WARNING this may be mind boggling.
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