This clip is a great introduction to monopolistic competition. Each performer provides a similar service, but they are not perfect substitutes for one another. When a new competitor enters a market, the demand for the original firms decreases and profits should fall as well.
West Wing — Post Hoc Ergo Propter Hoc
One of the most common fallacies that people fall victim to is the post hoc ergo propter hoc fallacy. Simply put, don’t simply assume that because one thing follows another, the first thing caused the second thing to happen.
Adam Ruins Everything — Trophy Hunting
Some markets fail because of the lack of property rights, but trophy hunting could actually be used to alleviate some of those issues by assigning property rights to game wardens and then selling licenses for the right to hunt the animals. The funding from the licenses could then be used to help maintain the population. We don’t think Adam ruined anything here.
Big thanks to Kalina Staub for sharing this one with us!
Adam Ruins Everything — Gift Giving
Adam does a great job working through the inefficiency of gift giving because of how people value different items.
The Economist — How Immigrants Can Save Dying Cities
The Economist outlines the impact that immigrants (particularly young ones) could have profound impacts cities that struggle with revitalization. If you’re looking for a book that details many of the arguments made in this video, I highly recommend Moretti’s New Geography of Jobs.
Chicago Booth Review — Video Killed the Radio Star
Erik Hurst, an economist with the University of Chicago, delivered an interesting commencement address that focused on the role of video games in the supply decisions of young men. While a bit more academic than some other commencement addresses, it sets the stage for a nice discussion on the increasing value of leisure.
Quartz — Robots Should Pay Taxes
Bill Gates, in an article with Quartz, argues that if a robot which take workers’ jobs should be required to pay taxes. Those tax funds should be redistributed to pay for re-training programs.
Paper Moon — Selling Bibles
The young girl performs the role of price determinator in this clip from Paper Moon. The bibles hypothetically cannot be resold because they are inscribed with a name of the deceased. The girl looks around the living room to determine the price that the consumers would be willing (and able) to pay for the bible.
Sherlock — Prisoner’s Dilemma
Sherlock works on a case involving missing women who recently arrived in London. It turns out that a taxi driver was abducting women and having them choose a poisonous pill to determine whether they lived or die. Eager for more excitement, the cabbie convinces Sherlock to play. Sherlock works through the process of trying to determine, by backward induction, which pill would be deadly.
He never finds out if he was right.
This clip was recommended by Christine Cai.
Better Call Saul — Sunk Cost Fallacy
If you’re teaching the sunk cost fallacy, this clip from Better Call Saul can be used to define the term. Kim tries to convince Jimmy to keep being a lawyer because of how much time and effort he put into the bar exam. Jimmy cuts her off to teach her about the sunk cost fallacy and how it’s a waste of time.