More on Interactive Thinking

As quoted by professor Amitava Bose:

Moriaty: "All I have to say has already crossed your mind."

Holmes: "Then possibly my answer has crossed yours."

Stuck in a Beauty Contest

Excerpts from our Macro Economics class:

"Supposedly a newspaper prints 100 photographs and readers are asked to select six faces which they think liked the most. The winner would be the one who would select the most popular faces. "

"It is not a case of choosing those [faces] which, to the best of one’s judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practise the fourth, fifth and higher degrees.”

Professor Amitava Bose added, "Prospective Buyer has some information suggesting that prices would go up but the seller also has other information suggesting that prices would go down (or at least prices of other stock would rise more than the one he is selling). Furthermore a buyer has to believe that when the price has reached its maximum there would be another buyer willing to buy the stock from him especially when the prices now are bound to go down. Can two 'rational agent' agree to disagree." 

Professor Amitava Bose is one of the best teachers I came across. Nobody I believe could make macro economics as simple and interesting as him. And his (oh- so- interesting)  redention of way in which stock market operates spurred me on to think more. And I fell into that ever worsening spiral of independent thought. I reasoned that since Girls generally wear all those nice clothes to attract boys and boys wear what they wear to attract girls. Does that mean boys who dress as boys (and girls who dress as girls) generally do not like what they wear themselves? Then why would guys generally shun a one of their own kind whose dress looks a bit  feminine. 

Does this mean that girls wear what they anticipate that boys will like but they eventually end up wearing what they (girls) like and boys hate? or Does it mean that I have a seriously messed up interactive thinking?