This thread is for asking any questions that might seem obvious, tangential, silly or what-have-you. Don't be shy, everyone has holes in their knowledge, though the fewer and the smaller we can make them, the better.
Please be respectful of other people's admitting ignorance and don't mock them for it, as they're doing a noble thing.
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We have an economic system with N actors. Each actor has its own utility function that it uses to attempt to spend/invest money in areas that will grow. The system as a whole doesn't know these functions and the nodes can't see them internally. They just make a judgment and spend/invest. If they spend in an area that grows, more money comes to them via an agent in the system that redistributes cash as it flows to the originators of cash in a node.
For example, If N1 pays a dollar to N2 for a bottle of wine, N1 gets a share in N2. As cash flows through N2, little bits get funneled back to N1. So if N2 becomes the next big wine maker, many bits will flow to N1 and it will be rewarded for sending money to N1 early in time.
Does it follow from bayes theorem that if I keep passing cash through this system, that over time, the success rate will ocellate around the actual success rate of each nodes utility function? In this scenario, if you fail you get your cash back slowly over time,if you succeed you get it back more quickly.
I'm anticipating that a set of actors in this situation would end up in an economy where the level of wealth for each node converges on their true ability to create value.
If I'm totally misinterpreting, I'd love some pointers to good info to read.
If N2 basically has to pay a tax towards money being challenged through N2 after the node is in use for a while, why doesn't it instead create a N3 node to use as a conductor for payments?