Economics & Finance / Economic Theory / Microeconomics
Why Perfect Rationality Leads to Disaster: The Math Behind Self-Destruction
Course Notes on Finite Games and Rational Choice
We've been told that being rational is the ultimate superpower. But what if the math proves otherwise? In this video, we break down the shocking findings from Riccardo Bruni's *Course Notes on Finite Games and Rational Choice*—a text from the University of Florence that blends logic, philosophy, and game theory to reveal a dark truth: perfect rationality can actually drive us toward collective ruin. From the prisoner's dilemma to the Nash death spiral, we explore how our smartest choices often lead to the worst outcomes, and how concepts like the trembling hand and Zermelo's theorem show that free will might just be an illusion. If you've ever wondered why smart people make terrible decisions together, this is for you.
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