Equilibrium, Expectations, and Information: A Study of the General Theory and Modern Classical Economics by Li Chengrui

Author:Li Chengrui [Chengrui, Li]
Language: eng
Format: epub
Tags: Political Science, General
ISBN: 9780429698514
Google: QGwPEAAAQBAJ
Goodreads: 44597926
Publisher: Routledge
Published: 2019-03-06T00:00:00+00:00

3.2 Inter-Sector Information

A parable of planets IIIb

At office parties on Mercury, the staff used to amuse themselves by playing musical chairs. The number of chairs in the game was determined by the management. When the music stopped, those without a seat had to remain standing for the rest of the evening. An argument invariably arose as to whether those left without chairs were voluntarily or involuntarily unseated. Some argued that if you really wanted a seat you would be able to get one, and that there would always be a natural number of people who chose to remain unseated. Others suggested that the manager should hire more chairs to solve the problem of seating arrangments. Still others suggested that if only the players could communicate their intentions to each other, an optimal allocation of seats could be obtained.

To resolve the latter issue, the participants agreed one evening to announce their intentions to all and sundry. The game commenced, and when the music stopped the usual number of people were left seated.

Moral: A full declaration of intent by the participants will not change the number of chairs selected by the management.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.