Sorry for being so dim, but I’m still not getting it.
You said;
“no individual car would choose to switch lanes because the car in front…”
Did you mean that they typically won’t, which would be more realistic?
But even with that, I still don’t get any paradox issue out of this.
People could (if allowed) gain by changing to the slow lane (and many actually do that). And because some do, traffic flows a little bit faster, even if more dangerously so. But even if none of them ever did switched and thus didn’t gain anything, what is the “paradox” or even “issue”?
It’s a stupid road rule. You found a stupid road rule. Good for you.
If only none of the lanes were for going faster, it might actually make for less of a road jam. Having that rule in place makes drivers think they have the right to speed up, and that leads to even more danger on the road.
I would say break the rule, and you’re more likely to get where you want to go a lot faster.
People get a rush from following that rule, a rule that allows for extra SPEED. Breaking the habit would be life changing, and like I said, ironically, a faster way.