Question

In: Economics

Explain the reason for the following phenomenon: At parties in which several conversations are simultaneously in...

Explain the reason for the following phenomenon: At parties in which several
conversations are simultaneously in progress, it is common for everybody to be shouting
to be heard over everybody else, whereas they would all be heard better (and save wear
and tear on their vocal chords) if they all spoke in normal tones of voice.

Solutions

Expert Solution

Dear Student,

Below is the answer to your questions :

Yes I agree with the point that it will be better communication if they spoke in normal notes of voice

But the problem involves the differene between individual and group incentives, Suppose everyone starts by speaking at normal level. But because of the crowded conditions, conversation partners have difficulty hearing one another, even when no one is shouting.

The natural solution, from the point of the individual, it to simply raise one's voice a bit. But that is also the natural solution for everyone else. And when everyone speaks more loudly, the ambient noise level rises, so that no one hears any better than before.

No matter what others do, the individual will do better by speaking more loudly. Doing so is a dominant strategy for everyone, in fact. Yet when everone follows the dominant strategy, the result is worse (No one can hear well) then if everyone had continued to speak normally. while shouting is wasteful, individuals acting alone have no better option. If anyone were to speak softly while others shout, that person wouldn't be heard. No one wants to go home with raw vocal chords, but people apparently prefer that cost to the alternative of not being heard at all..

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