Economics of Drinking


Looking for some interesting economics reading? I found this paper today on the ‘economics of drinking.’ http://repec.rwi-essen.de/files/REP_09_158.pdf

The title is a bit deceptive, for the ideas in that paper can be applied to any drug. In essence, alcohol acts as a ‘social lubricant’ that facilitates easier communication between players in a game (or some interaction.) This therefore allows for the participants in the game/interaction to understand the opponent, and thus facilitate full information.

The theory is a bit sophisticated, but those who have taken 14.04, or other advanced game theory classes, could work through it; those in 14.01 could trudge through it with some effort or skim the methodology.

Cheers!

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