I spoke at this event last week, and, for the record, I did not say that Gabe Kapler was sexy and smart…damn you Mr. Mind Reading Emcee. Also, the Spock cutout seemed like a good idea until I realized I had to keep stuffing him in an Uber the rest of the day:
I suppose this explains why Homer and Spock give very different ratings to Uber drivers. Anyway, I try to put together something new and (hopefully) interesting for each one of these, since I feel like it’s not really enough to basically give a book report on social science research without some sort of central thesis. (Or maybe I’m just still butthurt over one of my talk drafts a while back being referred to a a Dan Kahneman book report.) This one is about how it’s important to keep in mind that irrational “mistakes” don’t always lead to market inefficiency, and sometimes even the opposite can be true. Here’s the talk…
…and some notes/sources:
- 1:42: More than you ever wanted to know about the definition of economic rationality.
- 5:45: Here’s a refresher on why monopolies are inefificent and not optimal for society.
- 6:35: The Spock’s cat idea isn’t as ridiculous as it may initially sound:
- 7:15: Here’s a paper on the ultimatum game.
- 9:35: Or, as my mom would say, willing to cut of one’s nose to spite one’s face. Yeah, I don’t quite get it either.
- 10:15: Yes, I realize that there’s a distinction between fairness and economic efficiency, but I doubt that most people would actually describe a hugely unfair outcome as “efficient” from a societal perspective.
- 10:25: Here’s that Harvard Business School study.
- 12:20: In other words, a market of Spocks would need government to come in and offer a subsidy to internalize the positive externalities of corporate social responsibility, whereas a market of humans sometimes gets to the efficient outcome on its own.
- 13:50: Specifically a libertarian island of economic Spocks, of course.
- 15:33: A fine is a price.
- I wasn’t kidding about the hotel towels.
- 16:32: The tragedy of the commons. Also, note how I managed to reference Ostrom without being all “hey look, she has ovaries!”
- 17:05: Alex Tabarrok is one of my favorite people.
- 17:45: Public goods are underproduced in a market of economic Spocks because of the free-rider problem.
- 18:38: Sadly, I’d probably trust people more to be self-interested than to be altruistic, even though neither characterization is 100 percent correct.
- 18:58: That’s a nice way of pointing out that one douchebag can ruin things for everyone.
- 20:24: No really, people are obsessed with surge pricing.
- 21:50: Homer Economicus.