Stone Garden Economics

The study of economics can be divided into two great branches. They are governed by two laws. Economist Mancur Olson describes these laws. The first is this: “Sometimes, when each individual considers only his or her interests, a collectively rational outcome emerges automatically.” But there is a second law, says Olson. “Sometimes, the first law does not hold: No matter how intelligently each individual pursues his or her interests, no socially rational outcome can emerge spontaneously.” . . . → Read More: Collective Action