1. Traffic, SARS, NASA and Democracy

2. Group Coordination, Traffic & Incentives
The point of congestion pricing is to get people to coordinate their activities better by balancing the benefits they get from driving against the costs they inflict on everyone else.

3. Group Coordination, Traffic & Incentives
Incentive structure is key:
London: 20% reduction in traffic, 40% increase in car
speed, increased use of public transport and biking
- The flow of traffic is now a better reflection of the real value
that people truly place on driving.
Mexico City: last number of license plate & days of the week
- What happened?

4. Group Coordination, SARS & Incentives
SARS shows the power of group collaboration, as contrasted with “science” and epidemics from previous eras:
No one was “in charge,” yet coordination was abundant: group research projects proliferated rapidly, there was an effective division of cognitive labor, as well as diversity and independence of individual participation.
Like the Iowa Electronic Markets (IEM), scientists’ are driven more by recognition than financial profit and the inherent competition involved (absolutely key) ensures a steady infusion of diverse thought.
This competition provides an inherent check on flawed ideas, since showing flaws in other people’s work is one way to make a name for yourself.

5. Failure of Group Coordination, NASA & Incentives
NASA’s Mission Management Team (MMT) and the Space Shuttle Columbia: object lesson in how NOT to run a small group
Why?

6. Incentives, Group Decision-Making & Democracy: Dreams of the Common Good
Democracy often illustrates the superiority of group decision-making.
With the aggregating effects of American democracy, voters are not as narrowly “self-interested” as everyone thinks.
Evidence?
Strengths of Democracy?