# The Republic of Beliefs link:: [Goodreads](https://www.goodreads.com/book/show/53232210-the-republic-of-beliefs) At its core, this book is about how economics, law, and game theory intertwine. It talks about how, if left unchecked, natural economic incentives could lead us to undesirable outcomes, as individuals tend to maximize their returns, as commonly studied in game theory. One well known example is the [tragedy of the commons](https://en.wikipedia.org/wiki/Tragedy_of_the_commons). Because of that, law plays an important role to alter returns that people get from different kinds of behavior, which, if properly used, could help us shape a better collective. One intriguing part comes when it discusses why laws often fail -- using case studies like corruption, totalitarianism, global conflicts, etc. Some of the causes lie within the actors, like how we often overlook the enforcers of the law or assume their compliance, which may not always be the case. Some stem the policies themselves, such as trying to direct the economy to a non-equilibrium point, stating laws in ambiguous or contradictory ways, and the obscurity of what constitutes a focal point for different groups of people. The complete picture is, for sure, a complex interplay of various factors, but Basu presents many compelling points. The book argues that, while laws are important, the ultimate goal is to establish norms. There's no point in having laws if people believe they can always violate them, whether by bribing enforcers or because settling charges is economically more favorable. For laws to be effective, people must believe in their necessity and adhere to them. People form their behaviors based on their beliefs on what constitutes the _right_ direction. Might be the reason why the book is titled that way. Though not discussed within, I feel that this concept of shaping people's beliefs also explains why we have many variants of laws. Most of us typically associate "law" only with those enforced by nation-states through military power. But there are also things like religious beliefs where one might be subject to divine punishment upon breaking them, or these days, laws written through the algorithms of products that we use. Ultimately, an important message is to better understand human behavior -- on how we form our beliefs. Economics, law, and game theory are just some concepts that can help us better deconstruct them -- to help us better collaborate as a collective in this complex world. Overall, I think it's an enjoyable read, though some parts are pretty technical and thus could take some time to grasp.