Leslie tries to convince Jessica Newport to donate the Newport land to the national Park Service by reminding her that the Newport name has not always been associated with positive things. For instance when their hot fudge pipe exploded and the hot fudge flowed into the lake making the fish taste delicious. Negative externality or positive externality, you be the judge.
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!
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.
Tom wants to look good, and smell good, for Jessica Newport so he decides to sit for a few minutes in his “cologne cloud.” The smell is so overpowering though that Leslie needs to exit the car immediately. While Tom feels be benefits are worth the smell, Leslie isn’t a fan of the external effects.
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.
The citizens of Pawnee drink from a water fountain by placing their whole mouth on the nozzle. Ann correctly points out the externality in the situation that by kissing one water fountain drinker, you’re kissing them all.
The pollution from the local factory creates a beautiful sunset, but it also gives people asthma. Ben and Leslie debate whether the beauty of the sunset is worth the tradeoff. Reducing pollution to zero would be extremely expensive, so it’s important to find some optimal level of pollution.