Dina and Glenn discuss Amy and Jonah’s new affair, but Amy points out that people behave differently when they’re being monitored. While Glenn believes most people behave appropriately, Dina notes that if you “take away the threat of punishment and you’d be horrified at what people admitted to doing.”
Dina and Glenn provide amnesty for employees to admit wrongdoing, even though they aren’t aware anyone has done something wrong. Incentives (like amnesty) can cause people to behave differently than under a condition without them. Dina and Glenn are hoping that amnesty will provide a strong enough incentive to convince some people to confess.
Jonah and Amy are searching for a secret entrance in the back of the store so that Amy can save a video game that was released earlier in the day. She and Jonah come across a room of previously recalled toys and snacks. One of the reasons for government intervention in markets is based on paternalism, in which the government believes they know what’s best for its citizens. Governments also intervene in markets if they believe there are health and safety risks.
Marcus gets the idea to create a new type of cheese using breast milk. He pitches his idea to his coworkers in the hopes that they’ll invest in his product. He believes that breast milk cheese could enter the cheese market and compete with other, more well established varieties.
Mateo has been injured on the job and Cloud 9 is hoping to pay him enough so that he doesn’t sue the company. The problem? Mateo is undocumented and can’t accept the payment because he doesn’t have a social security number. Jeff (the regional manager) doesn’t know the reason and assumes that Mateo is just holding out for more money.
When it comes to buying things (in this case, Mateo’s right to sue), people rarely share their willingness to pay from the beginning. In an effort to earn some consumer surplus, people try to get things for less than they’re willing to pay.
Sushi is on sale, but people should question whether it’s worth the risk? If companies have too many products, it may indicate that the price was set too high. When a surplus exists, firms reduce the price so that the market clears. Unfortunately, the quality may not be as high as it was the day before.
In this brief transition, a customer selects a bottle of gluten free water from an endcap display. Advertising is often used to differentiate products from competitors, even when no apparent difference exists. Water doesn’t contain gluten, but people may be willing to spend more if they believe it does and care enough to avoid it.
Amy is single again and is talking about the new things she wants to do with her free time. She’s bought some plants and wants to start doing puzzle games, but her coworkers don’t seem all that excited for her. Tastes and preferences are an important factor in analyzing markets.
Search theory describes how mutually beneficial transactions are achieved when there are a variety of heterogeneous options available. Throughout this particular episode, Amy deals with people trying to help her find a partner, but she’s not well informed of their quality. Matching markets often involve some form of imperfect information that participants must face when trying to decide to transact.
Glenn and Jerusha are having trouble finding a surrogate for their next child, but Dina becomes very interested. She considers that $20,000 is roughly how much money she earns in a year and begins pondering the things she would spend the money on. Dina and Glenn don’t get along, so they go through the effort to make it seem like they aren’t really interested, but both see the opportunity to exchange cash for surrogacy.
Teaching with Superstore