The Pawnee River Needs Cleaning

Ben is in DC working as a congressional inter and Leslie takes the opportunity to head to Washington, D.C. to ask for federal funding the clean up the Pawnee River, which is a bit of a “fixer-upper.” This rent seeking behavior is common when entities are seeking federal funding for items that will only benefit their areas.

Because of Jail


The Parks Department of Pawnee invites delegates from their sister city in Baraguá, Venezuela to attend a local townhall meeting. This particular townhall meeting includes complaints about various externalities associated with parks including frisbees and dog feces. The Baraguá delegate describes the command and control approach used by his country when citizens impose externalities on others.

Externalities of a Roommate

Andy goes to the hospital for a broken nose, but it turns into a rant session for Ben. It turns out the roommate situation between Ben, April, and Andy hasn’t been ideal because Andy and April continue to use his things without his permission. Andy and Ben negotiate for ways to remedy the externality on their own. If property rights are well established (Ben does own his stuff!) then two parties can work out externalities without government intervention.