Tom isn’t happy with Mona-Lisa anymore, but he isn’t brave enough to break up with her. He decides to seek out help from his previous girlfriend, Ann, but it’s going to cost him. Ann initially refuses, but agrees once he offers her his chenille blanket that she likes.
See more: behavioral, break ups, exchange, gains from trade, prices, trade
The Animal Control Department in Pawnee is pretty inept. Their role in the government serves a purpose, but they aren’t doing a very good job. It’s possible a private enterprise (like a pest control service) could be more effective, but its cheaper to staff a few employees to do the same work.
Thanks to an anonymous submitted for the clip!
See more: government, incentives, principle agent problem, private incentives, shirking, social incentives
Ron and Leslie get into a debate about people’s right to determine how they treat their own bodies. Leslie shows up to his dinner where Ron announces he’s eating a Turf’n’Turf and will consumer an entire cigar. Ron is a firm believe that people should be allowed to do what they want with their bodies and shouldn’t be controlled by the government.
Thanks to an anonymous submitter for the clip!
See more: choice architect, choices, free market, health economics, private benefits, social costs, tradeoffs
After Sweet-Ums tries stocking the local parks with their sugar-loaded protein bars, Leslie and Ann try holding a town forum to persuade citizens to vote against this decision. Ron isn’t happy with this directive because he is a firm believe in people having the right to consumer whatever they want and that the government should not interfere in that decision.
Thanks to an anonymous submitter for the clip!
See more: choice architect, choices, free market, government intervention, health economics, negative externalities, obesity, role of government
Leslie accepts a job with the National Parks Service in Chicago, but it means she has to leave her hometown of Pawnee, Indiana. She tries to recruit team members from the office, but no one is willing to go with her. She begins to realize all the things she’s going to miss when she leaves. Because time and resources are scarce, Leslie is forced to make choices.
See more: comparative advantage, migration, mobility, needs, opportunity costs, preferences, psychic costs, tradeoffs, wants
Leslie is accused of stripping people’s personal freedoms, but there are significant benefits to the community. According to Leslie, obesity is down, test scores are up, and raccoon attacks have decreased, but some citizens aren’t happy with the changes. When determining the appropriate level of government regulation, the costs and benefits of each action need to be considered, which is easier said than done.
See more: choice architect, choices, externalities, government regulation, negative externalities, nudge, rational choice, role of government, social benefits, social costs
Leslie meets with Kathryn Pinewood to discuss the sizes of sodas sold at the local restaurants. Leslie, as city council member, doesn’t believe that this move by local businesses is good for the health of her community. Local restaurants have gotten creative in marketing the larger sodas by offering price discounts when customers by large volumes. Despite framing the larger sizes with more normal names, Leslie is confused why people would keep purchasing that much soda.
See more: behavioral, choices, framing, health economics, negative externalities, preferences, price discrimination, second degree price discrimination, subjective value
Leslie’s first act as a city councilwoman is to implement a soda tax because she believes that it will make Pawnee healthier. The new larger sodas are causing obesity in town and Leslie aims to regulate the market through taxes. Depending on the size of the local elasticity, there may not be much of a change in consumption, but it could mean additional revenue for the city.
See more: elasticity, externalities, government regulation, government revenue, health economics, negative externalities, preferences, regulation, taxes
Ben’s been offered a job with a local accounting firm, but he isn’t as excited about the commute or the carpeting in the office. Leslie recommends that if he isn’t in love with the idea of working there then he should take some time to consider other options. The non-pecuniary aspects of jobs are important in the decision to accept employment.
See more: compensating differentials, labor, non-pecuniary factors, opportunity costs, types of income, unemployment
Ron isn’t happy with the steak he was served, so instead he asks the waiter to give him all the bacon and eggs they have. While a bit extreme, his preferences and utility function should be respected in society despite the potential for future health issues.
See more: intrinsic value, moral hazard, obesity, preferences, subjective value, utility
Economics of Parks & Recreation 