Supply and demand3

A coordination game is one in which two or more parties are faced with an identical set of choices. The outcome of the game can vary depending on what each party decides to do, with some outcomes being beneficial to all parties, others to just one party, and still others to neither party. Think when four cars pull up at the exact same moment to an intersection with a four way stop sign.

Coordination failure can happen when people make decisions based on assumptions about how other people will behave. When all four cars go at once. A viable long term solution can be found when the information sharing is clear and authentic.

Supply and demand2

“Rational addiction” means we get addicted to things by engaging them over and over again, and we stay addicted to them because we feel the benefit outweigh the costs. In other words, being an addict is a completely rational decision in the sense that the addict has considered the long and short term pros and cons. Adult smokers rather choose to smoke than not smoking. The same applies to the habits that considered good in general, like working.

We can kick those habits and develop new ones by deciding the benefits no longer outweigh the costs. The beginning is the hardest part, by committing to change; we would overcome the seemingly insurmountable goals.