Life in Pieces — Flight Vouchers

 

Colleen and Matt are at the airport waiting for their flight, but it’s overbooked. They realize that they can receive flight vouchers for volunteering to wait for the next flight. Throughout the day, they continue to volunteer to be moved to the next flight until the last flight of the day is cancelled. The two end up missing their own wedding, but they are compensated with the “free hotel.” The scene outlines the value of time that people have in their willingness to delay their travel, but it also shows the potential risk of not making it somewhere.

Thanks to Peach for the clip suggestion!

M&Ms — What are Caramel M&M’s worth to you?

 

 

In this commercial for the new caramel M&M’s, our grocery store employee is trying to buy back M&Ms from customers as they’re leaving the store. The employee offers $2, $3, and his watch to get the M&Ms back even though the customers could easily go through the line again and get a new bag. People tend to value items they possess at a higher rate than they actually paid for them and this action appears irrational since the transaction costs of buying another pack is already low.

Thanks to James Tierney for actually watching the commercials on Hulu:

 

YouTube — Trying to Buy People’s Dogs

This prankster is going around Chicago asking people to sell their dog for up to $10,000. Most people aren’t willing to part with their beloved pooch, but some people consider his offer. This clip is a good introduction to the idea of willingness to sell and people’s subject valuation of their possessions.

The Hudsucker Proxy — The Hula Hoop

This is a clip from the movie “The Hudsucker Proxy” (1994). In the scene, the store owner have a hard time selling the Hula Hoop. He kept lower the price but still no one wants to buy the Hula Hoop even he end up giving them for free with any purchase. He then throw all them out of the store and one of them accidentally bump into a boy. The boy start playing with it and the other kids saw it. After that, they all run to the store for the Hula Hoop. As more and more kids tried to buy a Hula Hoop, the price goes up again and even higher than before.

This related to the idea of demand and supply. At first, the Hula Hoop was not popular for kids so there’s no one wants to buy it. However, after the kids saw the boy playing with it, their preference change. Preference can change the demand of a product. When the demand increase, the price of the product and the supply also increase.

Thanks for the clip and summary Yi Chun Liu.

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