Sublime

Thomas Schelling in his wonderful essay “The Life You Save May Be Your Own.”

use your relative advantages to impose out-of-proportion costs on the opposition and complicate his problem of competing with you.

Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.

As a new point of view we turn to bounded rationality, a departure from the mainstream tradition. We no longer can assume that every agent is a perfect calculator. This point of view is given a great deal of emphasis by Herbert Simon. Simon argued that people do not maximize. When they’re forecasting the future, they do not perform the task of rati

At its core, the Uber playbook for competition worked by relying on the Economic network effect—when it was the larger player in a city, it could subsidize the driver side of its network more efficiently.

Each of the systems interacts with its environment in a game-like way: sequences of action (“moves”) occasionally produce payoff, special inputs that provide the system with the wherewithal for continued existence and adaptation.