To anyone carefully reading the last 2 posts above,
i hope it is apparent by now that
part of the reason is that it is a self-fulfilling prophecy.
To better model such scenarios,
can start by searching for and reading about feedback-loops in Systems thinking.
Part of the value of any asset is the trust/belief in its future value.
Also, sometimes there is not much more than that to account for the asset’s entire value.
Here’s an interactive (and somewhat fun) guide
that i like to recommend folks to get exposure to the basics
and arrive at the optimal strategy on how to trust in such a scenario.
…or is this scenario better modeled not as a Prisoner’s Dilemma,
not even an iterated one,
but rather as a Stag Hunt instead? 