Growth

Rich and Co.

Oh oh! “In a society that tightly controls the use of resources, failure is less likely.”

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“The Nash equilibrium captures the idea that nobody is forcing you to do the right thing. You are doing just what you want to do to optimize your own benefit. If, however, it’s a resource that is very carefully managed by a central authority, the failure probability is lower.”

“…people have differing, or heterogeneous, aversions to losing. In free societies, where people can exercise decisions based on their differing loss aversion, total use of a common resource is higher than otherwise.”

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Written by Rich and Co.

September 30, 2016 at 5:29 pm

Posted in Uncategorized

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