econ.TH econ.TH

Eight hundred participants, firms and workers, enter the market. Each holds a strict preference list in mind. The challenge: pair up so that no one wants a do-over. In mathematics, this is called a game theory with a ban on repeat alliances, and its roots trace back to the work of John von Neumann and Oskar Morgenstern.

Two gardeners haggle over water from a magical well. One proposes how many buckets to take, the other can agree or refuse. If the deal goes through, the water decreases; if not, the well gradually refills. This haggling repeats hundreds of times, and the gardeners' habits sometimes change randomly, as if they're trying new tactics.