Comments on: A Lesson from Nash on Gridlock http://www.icekreamkoan.com/2008/09/11/a-lesson-from-nash-on-oil-prices/ Flying and other stuff - Peter Braswell Tue, 15 Feb 2011 16:34:57 +0000 hourly 1 http://wordpress.org/?v=3.1 By: ryan http://www.icekreamkoan.com/2008/09/11/a-lesson-from-nash-on-oil-prices/comment-page-1/#comment-1444 ryan Fri, 19 Sep 2008 12:32:46 +0000 http://www.icekreamkoan.com/?p=24#comment-1444 But if everybody is taking the same route to the point that the route is now congested then it's no longer in each individuals' best interest, ay? It would seem that each individual should still be pursuing what's to their best interest _within the context of the overall group dynamic_? Probably splitting hairs here. It's an interesting concept. But if everybody is taking the same route to the point that the route is now congested then it’s no longer in each individuals’ best interest, ay? It would seem that each individual should still be pursuing what’s to their best interest _within the context of the overall group dynamic_?

Probably splitting hairs here. It’s an interesting concept.

]]> By: peter http://www.icekreamkoan.com/2008/09/11/a-lesson-from-nash-on-oil-prices/comment-page-1/#comment-1443 peter Wed, 17 Sep 2008 20:43:30 +0000 http://www.icekreamkoan.com/?p=24#comment-1443 Ryan, good observation. In general a free-market economy works on the basis of each individual pursuing their own self interests. Cynics would say "greed" :-) The Nash equilibrium doesn't counter this universally, just in some circumstances. A Gridlock is a perfect example. If every individual takes the route that is optimal to them, then everybody's individual interest will not be maximized and the full economic value will not be realized. If however certain people choose to take a longer, but less congested route, the overall economic benefit is greater because the average commute time is less. A paradox when we think of a traditional free-market economy. Oh, and I took the restrictions off commenting. Ryan, good observation. In general a free-market economy works on the basis of each individual pursuing their own self interests. Cynics would say “greed” :-) The Nash equilibrium doesn’t counter this universally, just in some circumstances. A Gridlock is a perfect example. If every individual takes the route that is optimal to them, then everybody’s individual interest will not be maximized and the full economic value will not be realized. If however certain people choose to take a longer, but less congested route, the overall economic benefit is greater because the average commute time is less. A paradox when we think of a traditional free-market economy. Oh, and I took the restrictions off commenting.

]]> By: ryan http://www.icekreamkoan.com/2008/09/11/a-lesson-from-nash-on-oil-prices/comment-page-1/#comment-1442 ryan Wed, 17 Sep 2008 20:21:33 +0000 http://www.icekreamkoan.com/?p=24#comment-1442 This would seem to contradict the foundation of capitalism, which I interpret to be that a collective good is achieved through pursuit of individual greed? And please don't ever make me register just to comment on your articles, man! This would seem to contradict the foundation of capitalism, which I interpret to be that a collective good is achieved through pursuit of individual greed?

And please don’t ever make me register just to comment on your articles, man!

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