Tuesday, January 04, 2011

Skating and Spontaneous Order...

Alex Tabarrok From Marginal Revolution explains a bit about spontaneous order using a lack of central planning at a skating rink as an analogy.  Sure, a rink may have some ground rules for the newbies, but how do dozens of people manage to skate without constantly bumping into each other?
... In promoting my interest in avoiding collision with you, I also promote your interest in avoiding collision with me.

The key to social order at the roller rink is this coincidence of interest. I do not intend to promote your interest. I am not necessarily even aware of it. Still, by looking out for myself I am to that extent also looking out for you. My actions promote your interest.

Skating on the floor of the roller rink is an example of what Friedrich Hayek called spontaneous order.
John Stossel (everyone's favorite mustachioed libertarian on TV) humorously showed how centrally planned skating doesn't work out so well.  (With Brian Boitano in human form) in this video (starting about 3:16).

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