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Jacoby Rule Brainteaser

Posted By: Timothy Chow
Date: Saturday, 22 December 2012, at 1:03 a.m.

In Response To: Crawford Rule Brainteaser (Bob Koca)

Bob Koca wrote:

How much would you pay to turn on the Jacoby rule?

The purpose of the Jacoby rule is to deal with effects that are far from equilibrium, so the answer to this question depends sensitively on what kind of donkeys you're playing with. In some chouettes I can imagine that the Jacoby rule would be worth a lot (even if you don't include the value of the psychological relief from the reduced downtime), while in others it would not be worth much at all.

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