Congestion Externalities
There are two ways to travel from A to B and
2000 commuters make this trip every day. One route
always takes 40 minutes. The other route takes
20+(N/40) minutes where N is the number of travelers
using this route. Travellers want to minimize travel
time. They are indifferent between the two routes
when
1.
2.
3.
4.
5.
N=1600
N=1200
N=1000
N=800
N=600
Your opponent has hidden a prize in one of the boxes
below. He wants you not to find it. Your goal is to
find it. You can only open one box. Which box will
you open?
Box 1
1.
2.
3.
4.
Box 2
Box 1
Box 2
Box 3
Box 4
Box 3
Box 4
You must hide a prize in one of the boxes below.
Your opponent will try to find it by opening just
one box. Your goal is for him not to find it. In
which box will you hide it?
Box 1
1.
2.
3.
4.
Box 2
Box 1
Box 2
Box 3
Box 4
Box 3
Box 4
Your opponent has hidden a prize in one of the boxes
below. He wants you not to find it. Your goal is to
find it. You can only open one box. Which box will
you open?
Box 1
1.
2.
3.
4.
Box 2
Box 1
Box 2
Box 3
Box 4
Box 3
Box 4
You must hide a prize in one of the boxes below.
Your opponent will try to find it by opening just
one box. Your goal is for him not to find it. In
which box will you hide it?
Box 1
1.
2.
3.
4.
Box 2
Box 1
Box 2
Box 3
Box 4
Box 3
Box 4
And on to our lecture…