In their efforts, both apps employ strategies that a game theorist would approve of.
's idea of Christmas fun is guessing when China's economy will leapfrog America's to become the world's biggest.
Here’s our take, borrowing from Oyer’s insights: When the ratio of buyers to sellers is a constant, research shows (pdf) that the probability of successful matches between the two is significantly higher when there are more of both.
In the job market, employers and employees are more likely to be successfully matched if there’s a wider pool.
The Conference Board, a business-research group, recently predicted that China could become the world's largest economy as soon as 2012 on a purchasing-power-parity (PPP) basis, which adjusts for the fact that prices are lower in China. And America will only really be eclipsed when China's GDP outstrips it in plain dollar terms, converted at market exchange rates.
Since by that reckoning China's GDP is currently only two-fifths the size of America's, that day may still seem distant. When Goldman Sachs made its first forecasts for the BRIC economies (Brazil, Russia, India and China) in 2003, it predicted that China would overtake America in 2041. In November Standard Chartered forecast that it will happen by 2020.