Ted Lasso – Common Knowledge

Warning: this scene does contain explicit language

In this scene, Beard and Roy are trying to decide how to use their new star player in a match against a former coach from their team, who is familiar with their tactics and players. This creates a common knowledge problem because both Beard and Roy need to make a decision based on what they think the other person knows, what they think the other person thinks they know, and so on.

The problem is that neither Beard nor Roy can be certain about what Nate is thinking or planning, and this uncertainty can make it difficult to make the best decision for the team. In other words, they need to have common knowledge of each other’s intentions and strategies in order to make an informed decision. This common knowledge problem is an example of how information asymmetry can create challenges in decision-making.

The G Word with Adam Conover – The Value of A Label

In the late 1800s and early 1900s, there was no real oversight on meat packing and procession. When Upton Sinclair wrote The Jungle, it brought national attention to the unsanitary conditions at meat packing facilities. Today, the labels are intended to serve as a signal that meat has been processed correctly. It’s an attempt to correct for information asymmetry in which the food processor knows how the food was handled, but the final consumer is unaware.

Learn more: https://www.ers.usda.gov/webdocs/publications/41203/18885_aer793.pdf?v=0

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