Intellectually Curious

The El Farol Bar Paradox: How Crowds Self-Organize Around a Threshold

Mike Breault

Why does trying not to crowd a bar on a busy night end up crowded anyway? W. Brian Arthur’s El Farol Bar problem shows how bounded rationality, evolving heuristics, and adaptive decision rules drive a decentralized crowd to self-organize around an optimal attendance. We unpack mixed strategies, complex adaptive systems, and why chaos can be a feature that yields stable, efficient outcomes in traffic, markets, and AI.


Note: This podcast was AI-generated, and sometimes AI can make mistakes. Please double-check any critical information.

Sponsored by Embersilk LLC