The Strategic Dimension of Screening Innovative Ideas

When the Most Promising Waters Turn Red

You may be familiar with the “football theory of inflation,” an analogy introduced by economist William Nordhaus. It describes how spectators stand up to gain a better view, prompting others to follow suit, until eventually everyone is standing. No one’s view has improved, yet everyone is less comfortable.

A similar effect can be seen in traffic jams: when navigation systems recommend the same detour, too many drivers take it, creating new congestion that leaves all worse off than if they had stayed on the original route.

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