Meditations and Learnings

Meditations and Learnings

Bingo and Tuppy: A Tale of Division of Knowledge and Comparative Advantage

When two recently abandoned cats, Bingo and Tuppy, needed to survive alone, they faced a choice: go alone or work together. Their sole focus was eating and avoiding disease, which meant catching mice and remaining well-groomed. By working together, they could take advantage of the division of knowledge and specialise. With other considerations, such as sleeping and maintaining shelter, they had eight hours a day for these tasks. Bingo could catch four mice in that time, and Tuppy could hunt three. Both were as good as each other when it came to grooming, taking 2 hours to groom one cat. They decided Tuppy would do all the grooming and spend the remaining 4 hours hunting while Bingo would focus solely on catching mice. These were each their comparative advantage. Over time, specialisation created further efficiencies, and Tuppy could finish grooming them both in just two and a half hours. Bingo was now catching 5 or 6 mice a day on top of the 1 or 2 Tuppy would get. Had they faced it alone, they would have fewer mice and spent more time grooming. Every night, with their bellies full and fur clean, they dreamed of their hero: Adam Smith.