Saturday, October 28, 2006
Monday, October 16, 2006
If We Were All Rational, would everyone be speeding?
Given that p(x) at i=56 <> 1, no rational driver would drive at or below the speed limit.
The proximate reason for this thought is the exchange between Mark Pauly and Kenneth Arrow on the matter of "moral hazard," in which both appear to conclude that social stigma alone are not a matter of governance.