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.
See more: behavioral, preferences, subjective value, utility, utility maximization
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
Leslie wants to break up with Ben, but she needs to order a bottle of wine before she goes through with it. She let’s the waitress know that she wants wine, but isn’t coy about only selecting the cheapest one because she can’t tell the difference. There’s a long line of literature on the effects of quality and wine prices that shows even professionals can’t often tell the difference between brands.
See more: anchoring, behavioral, preferences, ranking, subjective value, utility maximization
Bobby Newport would rather play Wii bowling because the guy looks like him instead of playing on his actual bowling lane right next to his Wii. While this is an uncommon view, his preferences ought to be respected since he’s trying to maximize his utility function.
See more: preferences, substitutes, utility, utility maximization
Ron and Leslie ponder why people would eat anything other than breakfast. While they understand their own utility functions, they struggle to understand others.
See more: intrinsic value, preference ranking, preferences, subjective value, utility, utility maximization