Thursday, February 19, 2009

The Power of Positive Thinking

Some good game theorists should explain how we co-ordinate beliefs when we receive common signals about the economy. Wouldn't we all be better off if we could be convinced that the economy's outlook is improving? Would this be self-fulfilling? Instead, we all read the same bad news from the New York Times. This gloom convinces us that Orphan Annie isn't right that the "Sun will come out tomorrow". How do we co-ordinate our optimism? What sunspot will we fixate on? Who is an influential in our economy who can lead us by solving the coordination problem? Perhaps A-Rod?

Switching gears. Please take a look at Page 3 of today's California section of the Los Angeles Times. You will see an ugly picture of me and a pretty picture of Dora and you will laugh. The article is excellent. The picture is excellent. One of the subjects in the picture just didn't deliver.