Economics

Why Selfish Choices Create Traffic Jams

Why Selfish Choices Create Traffic Jams

The Price of Anarchy proves that when everyone chases their own best interest, the entire system slows down. By acting selfishly, individuals often unknowingly waste time for everyone, including themselves.

This economic concept measures the efficiency lost when people act independently rather than following a coordinated plan. In a city, if every driver chooses the quickest road for themselves, traffic bottlenecks inevitably worsen. If a central authority directed traffic, the overall travel time would drop significantly. This shows how individual freedom of choice can ironically lead to a worse outcome for the group.

Source: Price of anarchy

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