Jerry Seinfeld — Morning Guy

In one of Seinfeld’s monologues he covers the time inconsistencies between people’s decisions late at night versus the next day.  In his latest Netflix special, Jerry Before Seinfeld, goes through the bit again with some updates. While we assume people to be rational in many models, people do odd things with respect to their own-selves that they may not do if they were forward thinking. This time inconsistency creates a lot of opportunities for discussions of procrastination, overconfidence biases, and other behavioral anomalies.

If you want more economics and Seinfeld, check out YadaYadaYadaEcon.com!

Superstore — A Pharmacist’s Salary

Tate has no problem sharing his salary, but it’s unclear the main driver of the salary. In reality, salaries are comprised of a variety of skill and compensating differentials as well as potential efficiency payments. Tate has a doctorate of pharmacy, which should result in higher pay for human capital investments. In the clip above he mentions that people could die if he messes up, which probably adds a lot of pressure to his workday. This pressure could be a compensating differential that increases his pay. However, there’s also a chance he’s paid highly so that he doesn’t goof off, which would be an efficiency payment.

One Day at a Time — Risk Aversion

Penelope wakes up from a bad, but her mother is there to comfort her. After a second, Penelope notices that her mom has makeup on despite being asleep. Her mother tells her that she goes through the process of putting makeup on each night just in case she wakes up and meets someone or if she dies in her sleep. In this context, Penelope’s mom is risk averse and undergoes a lot of costs each night “just in case.”

Thanks to Khalaf Alshammari for the clip!

Impractical Jokes — Auction House Meltdown

The endowment effect in economics is a powerful explainer for irrationality. When people own something, they are often not willing to release an item even when someone is willing to pay more than it’s valued at. One of the famous examples is the coffee mug experiment. In this episode of Impractical Jokers, the guys head to an auction house and have one of them act like a remorseful seller who isn’t ready to part with their belongings. After pissing off the auction house members, the joker isn’t willing to buy his own tires back, which his friends submit to the auction house.

Thanks to Alyssa Lampros for the submission!

Chris Rock — Break Up

Chris Rock discusses his recent divorces and encourages couples in love to make sure they hold tight to one another. He does warn that if you’re thinking about leaving then you should probably leave immediately, perhaps after the show. A lot of people stay in relationships they don’t like being in because they’ve been together for so long, but that’s just irrational!

Life in Pieces — Coupons as gifts

Matt isn’t the best at giving gifts and he’s realizing that this year. Matt gives his wife a homemade coupon book that she decides to finally cash in to show him how awful the gifts are. After a while he doesn’t work as hard, but then at family dinner he finds out that no one really appreciates his gifts because it doesn’t seem like he puts much thought into them. There is a small line about positive externalities because Jen got a flu shot for her birthday once, which her husbands announces was “the gift that keeps on giving.”

Life in pieces also has another great clip on opportunity cost that’s worth checking out!

Chris Rock — High School Orientation

Chris Rock describes taking his daughter to her high school orientation and hearing the vice principle talk about how students can be anything that they want to be. While optimistic, Rock points out that it’s more appropriate to tell them that they can be whatever they’re good at as long as someone is hiring. It turns out Chris Rock and stand up comedy has a lot of insights on economics.

Thanks to Kim Holder and ECONShots for clip idea!

 

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