Walmart — Negotiations

Each year, children collect their trick-or-treat goodies and then go about trading their candy with each other. This scene from a 2019 Walmart commercial illustrates the concepts of gains from trade, bartering, and mutually beneficial transactions. Each child only trades an amount they are willing to give up and aren’t forced to trade with each other. After the exchange, both are better off than they were before the meeting.

Thanks to Brian Lynch for the recommendation!

Trading a Paperclip for a House

 

Kyle MacDonald started with a red paperclip and ended up with a house. Trade and barter requires a double coincidence of wants, but Kyle was able to find people willing to give up something he valued more than his holdings. Mutually beneficial exchange makes both parties better off. This is a great clip to start the process of discussing why trading can grow an economy and why centrally planned economies are harder to coordinate.

Thanks to @AlcovyEconomics on Twitter for the clip!

Young Sheldon — Haggling Skills

 

Meemaw is having a garage sale and have asked Missy and George to help out. When George questions the pricing decisions of the junk for sale, Meemaw explains that she starts prices high so that people can negotiate and feel like they saved some money, which is another way of arguing that she’s trying to let the customers experience some consumer surplus. When Missy & George try to negotiate for better pay, they realize that it may not work out.

 

The Little Rascals — Two Pickles

You don’t like pickles, but your friend does? That works out well for these two as Buckwheat buys Porky’s pickle from him for 2 cents. What a quick example for a mutually beneficial transactions.

The Bourne Identity — I Need a Ride

Jason Bourne, played by Matt Damon, asks a cash-strapped young woman (Franka Potente) for a lift while Conklin (Chris Cooper) musters all of his forces to find him. Both parties have something that the other one needs, so a mutually beneficial trade occurs. This clip really highlights the concept of double coincidence of wants.

Up ↑