Models of Racial Segregation

Tim Harford—the FT’s ‘Under­cov­er Economist’—has pro­duced a video demon­strat­ing Thomas Schelling’s the­ory of racial segreg­a­tion, in 2 minutes.

Schelling, who was awar­ded the 2005 Nobel Prize in Eco­nom­ics for “hav­ing enhanced our under­stand­ing of con­flict and coöperation through game-the­ory ana­lys­is”, showed with his Mod­els of Segreg­a­tion that even a mild pref­er­ence for the col­our of your neigh­bour can lead to extreme segreg­a­tion.

Har­fords view on this:

Although we as indi­vidu­als may be ration­al and we may be tol­er­ant, the soci­ety that we pro­duce togeth­er may be neither ration­al nor tol­er­ant.