Brexit, Trump and the Ultimatum Game
James Allworth
68345

Useful article. Disgust has been a socially useful trait in humans, e.g. incest, body waste products… In the economic theatre it serves to rein in the excesses of the dominant party. Whereby the fear of losing all should make for a fairer deal. Which is better than greater irrationality taking over later down the road in the form of e.g. violence.

Economists forget that humans are at best only partially rational. Nature left us this way as it wasn’t thinking about macro economics or globalism when our traits were honed. And those traits are applied at a predominantly personal and/or tangible level. In that economic zone, aka reality, talk of comparative advantage being a rational reason to vote is actually irrational to the point of being nuts. Which so many anti-brexiteers or anti-trumpers completely miss.

Many also worry about cultural change. Particularly if they come from the cultures which best fostered law, democracy, human rights etc etc, that have led to massive economic advantage even for non-participating cultures. They see law, democracy, human rights…being blindly sold out for minor comparative advantage at the macro level. Which in the long run, seems nuts. Irrational even.

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