Archive for February, 2005

Incentives: How to Outrun an Army with Three Arrows

Can you out run an army?Economic thought provides the ability to solve problems that lie outside the areas generally covered in economics textbooks. Today’s entry is an example of this. This question and answer is taken from a wonderful book called Hidden Order: The Economics of Everyday Life by David D. Friedman.

Q: A soldier has escaped from an enemy prison and is being chased by ten enemy soldiers. If he can make it to the border, he will be safe, but if he is caught, he will be killed. The soldier’s horse is tiring, and at the current pace, it will grow too tired before the border. Therefore, he will be unable to out run the soldier that are chasing him. His only assets, besides his wits, are three arrows in a quiver (the fact that the soldier has only three arrows is visible to the pursuers). He can shoot three of the chasing soldiers, but then the other seven will catch him. How can the solder use economic thought to escape?

Read the rest of this entry »

Posted on Sunday, February 6th, 2005
Under: Economics | No Comments »

Creative Commons License
UtilityMinimization is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 2.5 License.