O'Reilly logo

The Answers: The Global Economy by Jeremy Kourdi

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

PARTIAL FAILURE OF ECONOMICS

In 1977 the Journal of Money, Credit and Banking published a seminal article describing a Baby-Sitting Co-op and how it fell into recession. Over 100 couples with small children made an agreement: couples will baby-sit for each other. Those couples who want to go out for dinner will have another couple do baby-sitting. At the beginning of the experiment each couple received 20 coupons, each coupon entitling the couple who owns it to 30 minutes of baby-sitting time. When the experiment started, human behaviour kicked in. Most couples wanted to increase the number of coupons to give them more opportunities to go out in the future. In other words, most wanted to baby-sit to earn coupons and very few went out. Well, needless ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required