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Old 05-26-2007, 09:09 PM   #21
Kilroy_x
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Default Re: Leaf-blowers and Stadium Seating: Group vs. Individual Rationality

No, I understand that. It's just that there's no way to attain 3 3. If central organization is your proposal, you still need to answer the criticism that central organization also imposes a cost. The irrationality of agents may lead to 1 1, but there's no reason that rational agents wouldn't try to aim for 3 3. There's also the somewhat paradoxical issue of revealed preference. If all agents opt for an inferior outcome, then by definition it can't be inferior.
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