Economics on the beach V: on towels, parking spots, and job protection

You just arrived at your dream summer resort. You had a restful night almost entirely uninterrupted by mosquitoes. You just woke up and had a leisurely and plentiful breakfast. You are making your way to the swimming pool that looked so enticing on the webpage. And what do you find? You find towels. In fact you find towels on every single one of the lounge chairs that the resort has provided. While almost no lounge chair is actually occupied, not a single lounge chair is really available. Economics is supposedly (primarily?) about the allocation of scarce resources. So what about the scarce resource that is a lounge chair next to the pool in a holiday resort?

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The game theory of everyday life – the secret handshake

You are visiting another university and have arranged to meet someone from that university in the lobby of the hotel you are staying at. The hotel lobby is busy with many people and (for some strange reason) neither you nor the person you are supposed to meet have recognizable pictures on their webpages. How will you find each other? What is the mechanism behind it? How is this possible at all?

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The game theory of everyday life – where to stand in a lift

When you enter a lift, a bus, a doctor’s waiting room, or any other smallish place in which you and others are just waiting for something to happen, one of the key decisions you face is to choose where to stand or sit. How do we do this? What are the key factors (motives) behind our decisions? What are the consequences of this? What are the testable implications?

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The game theory of everyday life – gallantry

Chapter 1.II on “Vehicular Units” of Goffman’s Relations in Public has many more “nuggets” that are amenable to a game theoretic analysis in addition to the one I described in my previous post. In footnote 23 on page 17, for instance, he talks about what we would call “common knowledge” and that eye contact is perhaps the only way to establish it (referring here to the earlier work by Lewis 1969, Scheff 1967, and Schelling 1960). This could lead one to discuss Ariel Rubinstein’s “email game” (1989, ECMA) and some of the literature thereafter (and before). On page 14, Goffman talks about “gamesmanship” in whether or not we let others “catch our eye”. I would like to think here about pedestrians visibly (to all who do not do the same) refusing to “scan” their environment by looking at their smartphone while walking. This would lead me to discuss a paper of Hurkens and Schlag (2002, IJGT) and possibly beyond that. There is also Goffman’s discussion of the apparently commonly observed practice of the “interweaving” of cars when they have to go from two lanes into one. I have not yet seen a game theoretic treatment of this phenomenon and I am not quite sure (at the moment) how one would explain it.

But in this post I want to take up Goffman’s brief mention (on pages 14-15) of special circumstances that seem to necessarily lead to what he calls “gallantry”. This is when a path that pedestrians take in both directions at some point becomes too narrow for two people to pass simultaneously. Then one has to wait to let the other person pass. But who should wait and who should be first to pass?

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The game theory of everyday life – pedestrian traffic

Our starting point is Goffman’s Relations in Public Chapter 1.II on “Vehicular Units”. Goffman is here interested in the norms that regulate traffic, especially but not only pedestrian traffic. He first quotes Edward Alsworth Ross, Social Control, New York: The Macmillan Company (1908), page 1: “A condition of order at the junction of crowded city thoroughfares implies primarily an absence of collisions between men or vehicles that interfere one with another.”

Goffman on page 6 then states the following: “Take, for example, techniques that pedestrians employ in order to avoid bumping into one another. These seem of little significance. However, there are an appreciable number of such devices; they are constantly in use and they cast a pattern on street behavior. Street traffic would be a shambles without them.”

In this post I want to take up this claim and provide a model that allows us to discuss how people avoid bumping into each other. I will use Goffman’s work to help me to identify the appropriate model for this issue.

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The game theory of everyday life inspired by the work of Erving Goffman – Introduction

In April 2018 I spent a week at the Research Center for Social Complexity (CICS in Spanish) at the Universidad del Desarrollo (UDD) teaching a PhD research course on game theoretic modelling. The idea of this course, developed together with Carlos Rodriguez-Sickert, was to make it an experiential course of model building from question to model. We would start by reading parts of chapters of two books by Erving Goffman that deal with how people interact in public places and then attempt to provide game theoretic models of what we read.

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On Lying, III

In my previous post I argued that a person can be kept truthful (in a repeated setting) by the threat of never believing this person again once this person has been caught lying even once. This is a strategy that, as I have pointed out in my previous post and in one comment, many proverbs suggest.

In this post I want to ask the question whether this threat is a credible one. I will have two answers to this question. Yes and no.   Continue reading