Sunday, November 3, 2013

Brandon Meriweather Gets Externalities

The Washington Redskins defensiveback on the result ir the NFL's attempt to limit concussions:

Sunday, January 20, 2013

Thinking Beyond Stage One

Today, I saw an advertisement that Kwikfill ( only supplies North American gas, implying that buying their gas is better for American jobs than buying from its competitors.

How is this a failure to think beyond stage one?

Friday, January 11, 2013

We Cannot Rob Ourselves Rich

This video is a great lesson in social norms:

A man parks in front of a pharmacy and goes in to rob the register.  While he is inside, a second robber steals his car.  As the first man leaves the pharmacy to discover his car has been robbed, a third man holds him up and takes his loot.

Frustrated, the man went to the police station to report the theft of his car - where he ran into and was identified by the owner of the pharmacy.  Remarkably, while interviewed the man who held up the pharmacy admitted that the car was not actually his, he had stolen it the previous day. 

One person can steal for personal gain, but what if that leads to an equilibrium where everyone steals nobody can win.  Decision trees between acting in short term personal interest vs long term group interest are called prisoner's dilemmas.  This video demonstrates that the problem is not limited to the inside of prison walls.

Compared with the totality of knowledge which is continually utilized in the evolution of a dynamic civilization, the difference between the knowledge that the wisest and that which the most ignorant individual can deliberately employ is comparatively insignificant. ~Fredrich Hayek in The Constitution of Liberty