Ron owes a large settlement, but keeps his money stored in the form of gold and palladium. While the rest of the office thinks this is a really neat idea, they question whether he knows how much money he actually has since it’s not stored in paper money. Ron is confident in the weight of his money, but not its value.
Ron and Chris disagree with the best way to motivate workers. While Chris takes a more intrinsic approach, Ron focuses on base level needs of fear and hunger, but also on money. Ron’s extrinsic approach comes from his belief in markets being able to serve as a motivator. Both agree that motivating workers can increase productivity, but disagree on the best method of doing so.
Tom’s Bistro’s soft opening didn’t go well, so he thinks it’s time to quit. Even though Ron recommends sticking it out, Tom is phased by the sunk cost fallacy; he loves quitting! April comes to the rescue and convinces him to at least try a full opening.
Craig has to keep it together in the face of very strange requests during his interview to be the sommelier for Tom’s Bistro. While professional sommelier’s are known for being able to pair wines and meals, they must maintain their composure when customers ask for something different. While some may have odd preferences, its important to respect others’ utility functions.
Members of the Parks Department goes to London to visit, but Leslie can’t decide which bus tour to take. She has three options, all starting around the same time and needs to pick one. Ron and April aren’t much help. Because time is a scarce resource, Leslie needs to figure out which bus tour will maximize her happiness.
Tom incentives the department to come to his club and try his newest drink by threatening to place them on his “done-zo” list. The Parks Department decides to go to the Snake Hole Lounge to try Tom’s new drink, but instead they all have a bit too much and go through the next day feeling terrible. One of the other issues shown in this video is diminishing marginal utility. As the night goes on, each member of the group gets a bit happier, but they eventually peak and see negative returns the next morning.
See more: decreasing utility, diminishing returns, externalities, health economics, negative externalities, negative utility, private benefits, private costs, social benefits, social costs, unintended consequences, utility maximization
April accidentally schedules all of Ron’s meetings for March 31st because she doesn’t think it’s a real day. Instead, Ron has to deal with a variety of concerned citizens, many of whom are causing externalities throughout the city.