The Naval Podcast – Schelling Point: Cooperating Without Communicating

Check out Naval’s Episode Page & Show Notes

This podcast clip is part of a conversation between Naval Ravikant and Babak Nivi. Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.

Key Takeaways

  • The Schelling point is a game theory concept made famous by Thomas Schelling in his book, The Strategy of Conflict (which Naval recommends)
    • It addresses the question – How do you get people who cannot communicate with each other to coordinate?
    • For example – if two Americans wanted to meet, but could not communicate any more information, they’d utilize social norms to converge onto a Schelling Point
      • So perhaps the best chance for the meeting would be at midnight on New Years in New York City, somewhere like Grand Central or the Empire State Building
  • A simple example:
    • Imagine two companies are competing heavily with each other
    • Let’s say the price fluctuates between $8 and $12 for whatever the service they offer is – don’t be surprised if they converge to $10 without ever talking to each other
Bookmark

Add a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FREE! THE TOP 10 PODCASTS OF 2018, AND WHAT WE LEARNED

You'll also get our weekly newsletter with the takeaways from our curated list of top podcasts. Unsubscribe anytime.