utility
curves---Maps of curves (see diagrams
above) for each crewmember. Please notice the vectors leading to the treasure. Each
crewmember’s set of exponential
curves show the value of obtaining successive additional units of one thing
in terms of another thing: personal exchange rates at particular points in
space-time. Each curve in a crewmember’s set of curves represents
a level of internal well being. There is a slope on one’s current curve that matches
up with other shipmate’s utility curves, and on higher versions of
one’s own utility curves as well, opening the door for trade and a higher level of internal well being...escape velocity extraordinaire.
For example, one green sailor is grateful to be alive, and this mate's survival is largely due to the equanimity and special firsthand navigational knowledge of shipmates. The mate has 4 grand sandwiches and no bracelets, but it would make absolutely no difference to her at this particular point in space-time to have 2 sandwiches and 1 bracelet instead as both these combinations exist on her current curve. The slope (rise over run) between these two points on her current curve is negative one half. This mate’s exchange rate or marginal rate of substitution at this point is two sandwiches for one bracelet, in other words. On the other hand, an old Jamaican water trader worth his weight in gold arrives at exactly the same place and time with no sandwiches and 3 bracelets. The information this businessman has gathered, comparative advantage, shipmates and creative efforts spent in making bracelets while keeping an eye out is “the stuff” that got this man to this point. If this old kayaker could trade one of his beaded bracelets for two of the green sailor’s sandwiches, he would be much happier, on a higher utility curve in other words, and the green sailor has no problem trading two grand sandwiches for one bracelet, and is just as happy if not happier than before the transaction took place. Trade happened on the approach to where the exchange rates of both parties became the same, increasing the level of well-being, or happiness, of the gold trader while leaving the green sailor no worse off, and in fact happier in having repaid a kind act from an alert “upstander” at sea
For example, one green sailor is grateful to be alive, and this mate's survival is largely due to the equanimity and special firsthand navigational knowledge of shipmates. The mate has 4 grand sandwiches and no bracelets, but it would make absolutely no difference to her at this particular point in space-time to have 2 sandwiches and 1 bracelet instead as both these combinations exist on her current curve. The slope (rise over run) between these two points on her current curve is negative one half. This mate’s exchange rate or marginal rate of substitution at this point is two sandwiches for one bracelet, in other words. On the other hand, an old Jamaican water trader worth his weight in gold arrives at exactly the same place and time with no sandwiches and 3 bracelets. The information this businessman has gathered, comparative advantage, shipmates and creative efforts spent in making bracelets while keeping an eye out is “the stuff” that got this man to this point. If this old kayaker could trade one of his beaded bracelets for two of the green sailor’s sandwiches, he would be much happier, on a higher utility curve in other words, and the green sailor has no problem trading two grand sandwiches for one bracelet, and is just as happy if not happier than before the transaction took place. Trade happened on the approach to where the exchange rates of both parties became the same, increasing the level of well-being, or happiness, of the gold trader while leaving the green sailor no worse off, and in fact happier in having repaid a kind act from an alert “upstander” at sea