bentarm comments on Individual Rationality Is a Matter of Life and Death - Less Wrong
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It seems that car driving is just about the best example where some good group rationality is much more important than individual rationality. Imagine a world where everyone can drive a car just as well as Michael Schumacher, but they can't agree to drive on the same side of the road and stop at traffic lights.
Sure, individual rationality can be useful, but it's much more effective inside the right institutions.