James Tierney shared this great clip on his website a few years ago and it covers the idea of using Project Runway to discuss specialization and gains from trade. One of the contestants describes the process of designing the outfit line and discusses each member’s role in the creation of the outcome.
Golden Balls: Split or Steal
In one of the greatest game theory game shows produced, contestants play a simultaneous-move game where they must decide whether to split or steal money from each other.
A Beautiful Mind: Ignoring the Blonde
The classic scene from A Beautiful Mind when Nash (Russell Crowe) and his friends are discussing governing dynamics. Nash’s realization is not that of a Nash Equilibrium, but rather the classic view of Adam Smith (everyone doing what’s best for themselves) is harmful compared to if they just work together for the common good. It can be a bit confusing since the Nash Equilibrium is not that people should work together for the great good, but this is still a good introduction to a lesson game theory because it helps introduce why it might be harmful for everyone to only do what’s in their own best interest.
The Colbert Report: Evan Osnos & Cashmere
Evan Osnos discusses many of the externalities that arise from the increased production of Cashmere in China over the past decade. Osnos explains that cashmere goats in China have sharp hooves that tear up the landscape and create dust, which then travels to the United States and reduces air quality, particularly along the west coast. As cashmere consumption has increased, so has the pollution. Osnos refers to the “real costs” of cashmere items (such as a cashmere toilet seat cover that Colbert has) as including the health care costs for those affected by the dust.
Here’s a lesson plan from SERC:Â https://serc.carleton.edu/econ/interactive/examples/43020.html
Ted: Jonas Eliasson: How to solve traffic jams
Traffic jams are often provided as an example of a market failure. Drivers are focused on their own driving and don’t consider how it may impact others. As a result, too many people use road systems and congestion occurs. This Ted Talk highlights how Pigouvian taxes could be used to correct the market failure by instituting congestion taxes. While it’s not presented by an economist, he uses a lot of economics concepts throughout the talk.
CNN: Hunter says killing rhinos will help save species
While pretty controversial, this CNN clip does a great job of introducing the idea of property rights for endangered species.
Time — Bees & Almonds
This clip covers the production externalities associated with beekeeping.
The Wire: Stringer Bell Learns Economics
While attending community college, Stringer Bell enrolls in an economics course and tries to apply the concepts of elasticity to his copying business.
Jingle All The Way: Elasticity of TurboMan
Howard (Arnold Schwarzenegger) tries to get a coveted TurboMan action figure doll the day before Christmas. It’s only the hottest selling toy of the season, so everyone is in a rush to grab this item. Because prices aren’t (initially) adjusting in their usual way, a shortage occurs across the entire city.
A limited shipment of Turbo Man action figures does arrive at one store, which decides to allocate the doll through a lottery system. Whenever there are shortages in markets, there may be a misallocation of consumption, particularly when items are distributed randomly rather than to the consumers with the highest willingness to pay. Even the though the price of the doll increases by 100%, there doesn’t appear to be any change in the quantity that people want to purchase. This would imply that the demand for TurboMan action figures is very inelastic.
Buzzfeed: José Vs. Joe: Who Gets A Job?
This is a great clip to discuss employment discrimination and the value of a name (Freakonomics has a nice piece on that as well). I often joke that this is the only time I can show them a clip from Buzzfeed and it has relevant material for class.