Local Optima & Greedy Choices
Some interesting links on local optima/greediness/risk-aversion/creative destruction (eg. Porter hypothesis or equity premium puzzle), sometimes demonstrated by disasters.
“Obscurity is a far greater threat to authors and creative artists than piracy”, Timothy 2002
The Luck Factor, 2004
War/Disaster/Collapse:
“The great wars, the great crash, and steady state growth: Some new evidence about an old stylized fact”, Ben-1995; “Do natural disasters promote long-run growth?”, 2002
“The Economic Impact of Hurricane Katrina on Its Victims: Evidence from Individual Tax Returns”, et al 2014
“The Benefits of Forced Experimentation: Striking Evidence from the London Underground Subway Network”, et al 2017
“Resetting the Urban Network: 117–2012 AD”, 2016; “Monks, Gents and Industrialists: The Long-Run Impact of the Dissolution of the English Monasteries”, et al 2021 (see the criticisms of perpetuities/waqfs as locking in mistakes)
“Lehman’s Lemons: Do Career Disruptions Matter for the Top 5%?”, 2021
“Displacement, Diversity, and Mobility: Career Impacts of Japanese American Internment”, Arellano-2021
“Natural disasters and financial technology adoption”, et al 2024
Fire (background):
“Razing San Francisco: The 1906119ya Disaster as a Natural Experiment in Urban Redevelopment”, 2012; “Does Building New Housing Cause Displacement?: The Supply and Demand Effects of Construction in San Francisco”, 2021
“Creative Destruction: Barriers to Urban Growth and the Great Boston Fire of 1872”, 2017 (cf. The Limits of Power: Great Fires and the Process of City Growth in America, 1986)
“The Billion Pound Drop: The Blitz and Agglomeration Economics in London”, 2018 (contrast with 2020)
“The Fiscal Impacts of Wildfires on California Municipalities”, 2022
Decisions:
“Making Big Decisions: The Impact of Moves on Marriage among U.S. Army Personnel”, 2018
“Timing is Everything: Evidence from College Major Decisions”, et al 2019
“Heads Or Tails: The Impact Of A Coin Toss On Major Life Decisions And Subsequent Happiness”, 2020
“Science Is Shaped by Wikipedia: Evidence from a Randomized Control Trial”, et al 2017; “Wikipedia Matters”, et al 2019
“The Gift of Moving: Intergenerational Consequences of a Mobility Shock”, et al 2022
creative destruction; the “Porter hypothesis”; the equity premium puzzle
“Exploration in the wild”, et al 2018 (an interesting paper, although not clearly establishing suboptimal exploration, which uses an extremely large dataset of restaurant orders by individuals from Deliveroo)
“Evidence for a Conserved Quantity in Human Mobility”, et al 2016 (people visit few physical locations, and while they do continuously explore new locations & shift, there appears to be an equivalent of a Dunbar’s number, suggesting limits to human abilities to easily plan/remember activities covering more than ~25 locations regularly)
An amusing fictional example might be the My Little Pony episode “Applejack’s ‘Day’ Off”.
“Eager To Burst His Own Bubble, A Techie Made Apps To Randomize His Life”
See Also: Evolution as Backstop for Reinforcement Learning, Sunk costs, On Having Enough Socks