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Ron and Leslie ponder why people would eat anything other than breakfast. While they understand their own utility functions, they struggle to understand others.
See more: intrinsic value, preference ranking, preferences, subjective value, utility, utility maximization
Ron invites Mark over to his workshop because he needs a license in order to continue selling products. Ron describes how he shouldn’t have to follow government regulations about toxic chemicals because he’s the only one breathing the fumes. If he isn’t bothering others then he doesn’t feel the need to be regulated.
See more: externalities, government regulation, licensing, private costs, regulation, safety regulations, social costs
A soccer field is double-booked by the Parks Department and Leslie has to work out a solution for who gets the field. Because the field is rivalrous, both can’t use the field at the same time. One team’s use implies that the other cannot use the field.
See more: bargaining, common resources, resource allocation, rivalry, scarcity, tradeoffs
Tom needs to move, but doesn’t have a truck. He enlists the help of Mark because he has a pickup truck and Andy/April because he needs labor. All agree to help even though Tom offers no compensation. Social norms often mean that friends help each other despite not being compensated.
See more: behavioral, fairness, gains from trade, irrationality, opportunity costs, social norms
Ron believes that the government should be operated by private enterprise (like Chuck E. Cheese) that uses a token system to participate, like taking a walk, going down a slide, or seeing a duck. This would take a previously nonexclusive good and turn it into one that must be purchased to be consumed.
See more: capitalism, common resources, exclusivity, private goods, profit maximization, public goods, types of goods
In an effort to get Sweet-ums out of Pawnee Parks, Leslie and Ann hold a town hall meeting. Both Leslie and Ron try to frame their questions to get citizens to vote their way.
See more: behavioral, framing, private incentives, rent seeking, voting
Ann announces that she is not a fan of group dinners where everyone splits the check. This is most likely because she believes she’ll spend under the average bill and would have to pay more than her share if split equally. While it’s more efficient to split the bill, it often leads to some inequities in the final amount each person pays.
See more: behavioral, efficiency, equity, incentives, private incentives, social incentives, tradeoffs
Ron describes his promotion to manager of a sheet metal factory at the age of 9, but regrets that child labor laws are now ruining this country. Child labor laws a good example of decreasing in supply of labor for the early 1900s and a service as a good discussion on the role of government.
See more: child labor, efficiency, equity, externalities, labor, minimum wage, regulation, safety regulations, social costs, supply shifts, sweatshops
Leslie tries to turn a local pit into a community garden and allow citizens to plant whatever they chose in the garden. One citizen has taken advantage of the situation and decided to plant marijuana in the garden instead of vegetables or flowers.
See more: common resources, free rider problem, incentives, public goods, social costs, types of goods
The government often provides services for public goods and common goods when the private market isn’t ready to accept that responsibility. Because Ron is a big believe in free markets, he isn’t happy that federal money is being spent on providing common resources for the community. He believes that the best kind of park would be one ran by Chuck E. Cheese.
See more: common resources, excludability, federal budget, free rider problem, government, government programs, government spending, rivalry, role of government, types of goods
Economics of Parks & Recreation 