Friends — Joey Loses His Insurance

Joey finds out that he hasn’t been working enough lately, so the Screen Actors Guild is canceling his insurance. He’s quick to point out the moral hazard involved in insurance because now he has to be more careful!

Later in the episode, he comes down with a hernia after working out. Since his insurance has lapsed, he doesn’t have enough money to go to the doctor to get it looked out. Luckily, Joey is able to find a part as “dying man” and he ends up getting his health insurance back.

Thanks to Isabel Ruiz for the clip suggestion!

The Simpsons — MoneyBART

The local little league team has a new coach, and she plans on using statistical analysis to improve their chances of winning. She tracks player tendencies and digs into the work of Bill James to bring a Moneyball approach to the Isotots. Bart laments that she has taken the fun out of the game, which begs the question of the team’s objective function. Are sports teams win-maximizers or should some teams focus on having fun?

At the end of the segment, Bart has a choice to make. Should he take the statistical approach to win the game or should he swing and try to preserve his hot streak. The hot hand fallacy is the belief that previous observations are correlated with upcoming observations. This fallacy leads us to believe batters “get hot” even though the probability of the next hit is independent of the previous ones.

Brooklyn 99 — Moneyball

Captain Holt and Lieutenant Jeffords want to streamline the department and improve efficiency across the precinct. Jeffords is concerned that Capt. Holt is getting to greedy and can’t make many more improvements, but Capt. Holt believes he’s taking a Moneyball approach to the department. The film is his favorite and he finds the statistical analysis beautiful.

While he may be improving efficiency through his new statistical approach, the two should be concerned about diminishing returns. Productivity can increase with revised strategies, but additional productivity may require a significant increase in cost. In order to determine the optimal outcome, the two should focus on marginal analysis.

Zootopia — Barriers to Entry

In this particular scene from Zootopia, Nick Wilde and Finnick, buy a large popsicle to eventually meltdown and reform into small “Pawpsicles” to sell to other animals. This scene can be used when teaching barriers to entry since the popsicle market appears to have very few barriers. The two of them are able to access all the necessary ingredients and can setup their businesses outside the bank easily.

Thanks to Bryn Goldman for the clip suggestion!

Futurama — A Can of Old Fish

The gang heads to get some pizza and Fry wants his friends to experience anchovies, a type of small, salted fish. It turns out that these small fish were overfished and the population collapsed. Zoidberg even mentions how sorry he was that his people kept consuming them because they didn’t realize they were a common resource, subject to the tragedy of the commons.

Fry is incredibly rich, and wishes he could bring them back. He at first notes that even incredibly wealthy people aren’t able to purchase everything. At an auction, he finds that there is exactly one can left in the known universe and decides to bid all of his money for the “can of old fish”

While we normally wouldn’t pass judgement on someone’s preferences, it’s hard not to believe that this could a good example of a winner’s curse. Fry’s willingness to pay for the can of fish may not be $50 million, but the utility from winning the auction could be worth that.

Thanks to Jessica Pritchard for the clip suggestion!

The Simpsons — PBS Free Riders

Homer has found a new British show on PBS and he’s really loving it, but then they interrupt his show to ask for money. Betty White is a guest during the telethon and mentions that anyone who watches even a second of PBS and doesn’t donate is equivalent to a thief.

The Public Broadcasting Service (PBS) is a nonprofit American public television show. While the channel focuses primarily on educational programming, it relies on donations from viewers to help support its budget. PBS would be considered an example of a public good since it is nonrival and nonexcludable. One of the problems with public goods is that it is subject to underprovision because of free riders, like Homer, who consume the service but don’t contribute to its production.

Thanks to Tom Flesher for the recommendation on Twitter:

Adam Ruins Manufacturing

A lot of the recent discussion on the manufacturing industry has framed the loss of employment as a reduction in manufacturing capacity. The US manufactures more physical goods than ever, but it’s using labor as the primary input. In this segment of Adam Ruins Everything, we meet Hank who has recently been laid off from his job at the factory. In an earlier segment, Hank and Adam discuss major economic measures like GDP and Unemployment. In this segment, they discuss some of the misperceptions about manufacturing.

Adam Ruins Everything is a half-hour informational comedy where host, Adam Conover, debunks popular myths. Each episode is divided into 3 segments with some common themes. In the Spring of 2018, James Tierney and I sat down to go through all three seasons of Adam Ruins Everything to pick out examples in each episode that could be used in an economics course.

In the Summer of 2020, the paper was officially published in The Journal of Economics and Finance Education, which you can read online.

Superstore — Election Day

It’s election day and Cloud 9 has placed pamphlets in the break room encouraging employees to vote for anti-union candidates. Cloud 9 knows that unionization could result in much higher labor costs, so they spend that money to encourage workers to not form a union. This form of managerial opposition is part of the explanation for the decline in unionization rates in the United States.

Superstore — Employee Appreciation

After a recent uptick in the amount of union activity in the store, the corporate office has decided to institute Employee Appreciation Day. Jonah is quick to point out that this particular day always seems to occur whenever they are trying to get people to sign union card. He advocates for the union instead and mentions that joining a union may provide more long-term benefits, but Amy and Dina work to convince the employees that a union is unnecessary.

Superstore — Union Busting

One way firms respond to increased union efforts is through managerial opposition. Because it’s illegal to fire workers who try to unionize, firms may use alternative tactics to discourage the formation of a union. An employee has been talking about forming a union and the district manager lets Amy know that the corporate office is considering shutting down stores, and a unionized workforce would make it more likely their store could be shut down. Amy, Dina, and Jonah meet in a backroom to discuss ways to stop the unionization from proceeding.

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