ISET Economist Blog

A blog about economics in the South Caucasus.

New Old Chavchavadze Avenue – Putting the Horse Ahead of the Cart?

Preface: Imagine a Tbilisi where the Mayor rides a municipal bus, a football star passes you on a scooter, and your favorite guitar player locks up his bike at the entrance to a restaurant; not because they don’t have fancy cars (they do!), but because they believe these alternatives are healthier, more environmentally friendly, greener, and more convenient.  This really sounds like a European city! One issue on the tip of everyone’s tongue these days in Tbilisi—along with August holidays and the risks of COVID-19—is the newly-rehabilitated Chavchav...
Rate this blog entry:
Continue reading
Write a Comment

Not So Fast….Is The Nightmare of Georgian Road (Un)Safety About to End?

On April 21, the Parliament of Georgia approved changes to the Road Traffic law introducing the so-called demerit points system (DPS) in Georgia. Under the DPS every driver will receive a reserve of 100 points. For each traffic violation, in addition to monetary penalty, the points will be deducted from a 100 points “allowance”. Once the driver “burns” through all 100 points, his or her license will be revoked for one year. Those who do not burn through their points quickly will receive a new reserve of 100 points every year on January 1st. As a member o...
Rate this blog entry:
Continue reading
Write a Comment

If Moscow Can Beat the Traffic, So Can Tbilisi!

When I left Russia back in late 2006, attempting to cross a busy Moscow street bordered on suicide. Instead of slowing down before a zebra crossing, Russian drivers were in the habit of accelerating so as to signal their intention NOT to stop. Understandably, pedestrians had no choice but to adjust their street crossing strategies accordingly. The result was what an economist might call a “bad” equilibrium. Moscow drivers would not even consider letting pedestrians cross. And pedestrians would not even try.  When visiting Moscow for the New Year hol...
Rate this blog entry:
Recent Comments
Hans Gutbrod
A wonderful example of why you kind of have to stick with the bad equilibrium: I nearly got an elderly lady killed a few weeks ago... Read More
Tuesday, 26 January 2016 1:01 PM
Guest — JanFidrmuc
I didn't find crossing the road in Tbilisi much more of a challenge than in other Eastern European cities. Now that could have thr... Read More
Tuesday, 26 January 2016 2:02 PM
Eric Livny
Jan, thanks for your comment. Your option (1) does not seem plausible. (2) and (3) do apply. I am also quite assertive when crossi... Read More
Tuesday, 26 January 2016 3:03 PM
Continue reading
Write a Comment

Our Partners