Empiriceme · Model · Theory / Model

El Farol Bar Problem

When everyone forecasts the same congestion from the same information, the forecast defeats itself and no shared rule can be right.

Arthur's 1994 problem, modelled on a Santa Fe bar with live music. If everyone predicts it will be crowded, nobody goes and it is empty; the absence of a stable rule is the result, not a failure of the modelling.

In practice

  • Every team schedules its deploy for the quiet Tuesday window, and Tuesday becomes the busiest deploy day.
  • Everyone leaves for the beach on the bank holiday Monday because Sunday will be busy, and Monday is worse.
Further reading
Wikipedia
Subject
Games & Strategic Interaction
Essay
The recurring shapes of conflict and cooperation

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