Here is a revision of 353note6.txt, January 28, 1997, from Supplemental

notes on the homepage. Page 2, second and third full paragraphs should

read:

In contrast to classical strategy, there is bounded rationality. Sales

take place as if held at a Middle Western shopping mall with fixed prices

rather than flexible-price sales at a Middle Eastern bazaar. The world of

bounded rationality is full of car salespersons who use persuasion to make

a deal: If it is in your interest to make a purchase, the salesperson has

to engage in small talk in order to find out what your interests are.

Their fixed-price selling requires a search for information about the

potential purchaser that would facilitate a sale. Neither rewards nor

penalties are under the control of the salesperson. They point out the

unexpected benefits that may flow from the sale and unexpected costs that

may occur from not purchasing the goods. In this respect, salespersons are

not strategists manipulating rewards and punishments; they are data

collectors manipulating intelligence about potential clients. A keen sense

of timing allows for the effective use of such information in a process of

persuasion.

Neither strategists nor persuaders are ideologues who would prefer not to

make a sale if it involves sacrifice of principles. Ideologues would stand

on unlimited principle rather than achieve limited purpose, sacrifice

mutual gain for individual interests, prefer retribution to

rehabilitation. The Devil is an ideologue who would practice evil,

irrespective of success. The devil would defect in a game of chicken.

Jesus and Mother Theresa are ideologues who would use goodness,

irrespective of reciprocity. They would even cooperate in a single play of

a Prisoners Dilemma game.