Sunday, March 05, 2006
Economic Change
The Freakonomics column in the Times Sunday Magazine is also quite good. The article first explains how the market for real estate agents maintains equilibrium when housing prices rise.
Then, it discusses how the market is likely to change in the face of technological change.
Both discussions offer a good examples of equilibrium thinking. Recall, equilibrium is maintained when no one has an incentive to deviate from their current behavior. In both discussions, we observe people seeing an opportunity to do something differently and be better off and taking it. Learning to anticipate such opportunities is really quite important.
Then, it discusses how the market is likely to change in the face of technological change.
Both discussions offer a good examples of equilibrium thinking. Recall, equilibrium is maintained when no one has an incentive to deviate from their current behavior. In both discussions, we observe people seeing an opportunity to do something differently and be better off and taking it. Learning to anticipate such opportunities is really quite important.
// posted by BW @ 12:55 PM 
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