Sweden's Post-1967 Driving Norm as an Example of a Stable Equilibrium

Economic Equilibrium and its Self-Correcting Nature

Comparison of Stable and Unstable Equilibria

Physical Illustration of a Stable Equilibrium: Ball in a Valley

The Problem of Undesirable Stable Equilibria

Imagine a busy footpath where pedestrians have established an informal 'rule' of walking on the right side to avoid collisions. If a new person joins the crowd and starts walking on the left, they will likely face awkward near-misses and receive disapproving glances, prompting them to quickly switch to the right side like everyone else. Which of the following statements best analyzes why this 'walk on the right' convention is a stable equilibrium?

Fish Market Price Dynamics

The Self-Correcting Toy

Consider a rocking chair at rest. If it is given a small push, it will rock back and forth before eventually settling back into its original upright position. Based on this behavior, the statement 'The chair's initial resting state is a stable equilibrium because a small disturbance causes it to find a new, different resting state' is true.