Synopsis
Explaining how narcissistic behaviors get by in socioeconomic systems may actually be possible. Game theoretical behaviors are not unlike narcissistic behaviors; in that there is no empathy required in promoting cooperative behaviors. The fact that there are simple rule sets to promote collective interests, through using them as strategies, suggests that a narcissistic model could have some longevity in an economy. In the long term however, instability accrues; with an interesting exploit. This argument is intended to be hypothetical and for testing.
Interests:
Game Theory and narcissistic behaviors both revolve around interests. Of course narcissistic behaviors have more of a tendency toward personal interests; and Game Theory is more focused on coordinating them into collective interest. Game theoretical predispositions in human behavior are where the two meet in cooperation. Narcissism isn’t opposed to cooperation; where there is a favorable payoff. This can result in a great deal of cooperation; where negotiation is successful.
Empathy as Reinforcement:
Empathy functions as an emotional response that promotes fair play. The mirroring of oneself in anothers’ position is a deterrent to exploitative strategies. As one would not want to be exploited, one would have unfavorable emotional responses from exploiting others. An empathic model would thus be a model that would reinforce collective interests.
Empathy as an Exploit:
Empathy can be exploited by a narcissistic model in the capacity of one ups. An empathic model would be expected to avoid exploitative strategies; where a narcissistic model would be expected to serve its’ own interests, regardless of whether or not an exploitative strategy is used. Over time, one would expect that one ups would aggregate; and the personal interests of the narcissistic model would be better served, than the personal interests of the empathic model. These interactions in a distribution would of course result in poor service of collective interests; as narcissistic models would be expected to be a rarity in the distribution.
Exploitation and Destabilization:
Collective interests are important to the stability of economies. Each and every agent has an important role to play in economic activity; which directly relates to critical economic functions. Neglect of agents thus results in neglect of functional features in the economy. This is observed to result in destabilization of the economy. Fair trade is critical to economic stability.
Closing:
The consequences of economic destabilization are also drivers for economic change. With the more modern technologies, the frequency of economic crises is accelerating. Both economic growth and aggregation are occurring at unprecedented rates. Addressing the issue at its’ roots is arguably the best strategy for solving for crises. New solutions for promotion of collective interests could have a significant, favorable impact on the issue.
Exploits that favor liquidity for investing over credit for financing critical functions have been a dangerous threat to economic stability. The Housing Bubble for instance, produced a cascade of failures that came quite close to collapsing the entire financial system… world wide. The financial system spent several months on the precipice of total collapse; and the economy as a whole has only become more unstable.