Tuesday, October 21, 2008

Conversations On The Bus, "Yeah, That's Awesome," And My First Economics Related Idea

"Yeah, I got really drunk. I had to call a cab. My brother had given me all of these cab cards. I call one. He comes. He says, "Baby, you got some junk in your trunk." I am so drunk I play along, shake my ass, and ride in the cab.

Yeah, that's awesome."


My college roommate liked to order pizza but always forgot to buy drinks. I always had drinks in the fridge but was too cheap to order pizza. My roommate always had extra pizza. I always had extra drinks. We could have easily contracted and both been better off, but we never did.

In a way it was a prisoners' dilemma. But I always chalked it up to "communication costs." It cost both of us something substantial to admit to one another that we wanted something that only the other guy could provide. Now game theorists and economists have thoroughly dealt with this problem, but it is really a psychological problem. The real issue is decreasing the psychic cost of communication.

This has very little to do with anything except to say that there are some things in the world that don't make sense. And that is okay.

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