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
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.
See more: externalities, negative externalities, positive externalities, private benefits, private costs, social benefits, social costs, social incentives, tradeoffs
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
Most firms want workers who are hard working and dedicated, but Ron believes Tom is the best government employee because he doesn’t have those qualities. Tom’s ability to shirk would probably get him fired in most companies, but Ron sees things a bit differently.
See more: government, incentives, principle agent problem, private incentives, shirking, social incentives
Economics of Parks & Recreation 