Naval

Schelling Point: Cooperating Without Communicating

10 snips
Jul 12, 2019
Discover how individuals can effectively cooperate without communication through the concept of Schelling points. Learn about coordinating strategies in business, art, and politics, where anticipating actions leads to successful outcomes. Delve into the role of social norms in fostering cooperation and uncover practical examples of decision-making dynamics. This insightful discussion unravels the intricacies of how silence can guide collaboration in various fields.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Schelling Point

  • The Schelling Point is a game theory concept about coordinating without communication.
  • It relies on shared knowledge and rationality to converge on a solution.
ANECDOTE

Meeting Example

  • Two people who can't communicate try to meet.
  • Using social norms and shared knowledge, they converge on Grand Central Station at midnight on New Year's.
ANECDOTE

Oligopoly Example

  • Two competing companies in an oligopoly fluctuate prices between $8 and $12.
  • They might converge on $10 without communicating, demonstrating a Schelling Point in business.
Get the Snipd Podcast app to discover more snips from this episode
Get the app