I went to the amaaaaazing Thom Yorke and Atoms for Peace concert. Thom Yorke is the lead singer of Radiohead and object of indie blind devotion. And - just to be honest - I adore him. Since my teen years, Radiohead has always been a favorite of mine (come on! The guy wrote Creep - my teen anthem)! The fact that Flea - bass player of Red Hot Chili Peppers - was also on stage just made my day. It was just awesome.
And Thom managed to teach some Economics concepts.
1 - Coordination failure
We had Orchestra seats - kind of in the back of the Theater but still pretty centrally located. However, we stood up all the concert. If the guys on the front rows sat down, the whole orchestra would have watched the concert sitting and not standing up. So, sometimes rational human beings do not take the best decision for the collectivity because if the decision is not made by everybody at the same time, the cost of being the first one to act it's too high for any private individual to do it. Therefore, I stood up...
2 - Warm glow
When Radiohead released their album "In Rainbows" (amazing album btw), they offered it for download to the price you wanted to pay. The question was: why would you pay for something you could get for free? Rationally, it wouldn't make any sense. Still, people paid for downloading the album. Maybe those people derive utility from doing something they consider good (reqarding amazing musician for their music). People's utility function is not only based on maximizing resources - it also involves how they feel about it.
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