 | | Game in Washington | | DESPITE all the bluster about an impending default on the government's debt, most observers in Washington and on Wall Street still believe the two parties will reach a crisis-averting agreement.
That's because the practice of American politics assumes that all players will negotiate according to predictable patterns _ that they will realise they can get more from compromise than by demanding everything and winning nothing.
Under that assumption, President Obama is right to keep pressing for a compromise, because eventually the Republicans will fall in line. But as two wildly different fields _ game theory and the study of elephant mating patterns _ show, there are limits to the usual assumptions: Sometimes players simply refuse to play the game, and when that happens, the best advice for their opponents is to do the same.
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|  |  | | CAN'T THE US DO THIS RIGHT? | | THERE is only one thing worse than Republicans and Democrats failing to agree to lift the debt ceiling, and that is lifting the debt ceiling without a well-thought-out plan and with hasty cuts totalling trillions of dollars over a decade. What business do you know _ that is still in business _ that would operate this way: making massive longterm cuts, negotiated by exhausted executives, without any strategic plan? It certainly wouldn't be a business you'd expect to thrive.
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