Consumer Choice & Behavioral Labor

Ranking Employees

Glenn has been asked to fire 6 people before the end of the day, but he’s having trouble deciding which workers will be terminated. Amy decides to help him by having Glenn rank employees to narrow down the list. While evaluating employees, Glenn notes that Sarah is preferred to Elias. He’s trying to convert his subjective preferences into a ranking system.

Labor Unemployment

Quitting on Day 1

Bo wants to make $5,000 and then quit his new job, and he thinks he can do that in a week. When he finds out that it’s going to take significantly longer, he begins complaining about how little the store pays for the work he’s doing. He believes his marginal revenue product is significantly higher, but he doesn’t realize that his marginal impact on revenue is actually quite small. His role at the store could easily be automated.

Consumer Choice & Behavioral

Dating the Boss’s Daughter

Jonah and Amy discuss whether or not it’s a good idea for Jonah to date one of his boss’s foster children. Amy tells him it is not a good idea to date the boss’s daughter, but Jonah feels that he and Glenn’s daughter have a connection. Because Jonah just met her, he’s not really sure if they would be a good match and his hope is that Amy can provide more information to help him make a better informed decision.

Labor Principles

Incentive to Quit

The employees are in a betting pool to see which temporary employee will quit first. For each temporary employee, the original employees are trying to make the work experience less enjoyable than the alternative option of quitting. By doing this, they are increasing the opportunity cost of continuing to work. Their tactics range from emotional stress, manual labor, sexual harassment, and increasing the risk of injury.

Consumer Choice & Behavioral Principles

A Demotion for Love

Dina has had a crush on Jonah for a while, but Jonah was always able to avoid the situation because he said he wasn’t comfortable dating a supervisor. He shares this news with his friend, shortly before the store manager announces that Dina has decided to step down as assistant manager so that she can focus on personal matters. Either-or decisions of this matter require people to weigh the costs and benefits of actions. Some of the costs for Dina include not being able to criticize Glenn, a reduction of her authority, and likely a pay reduction. She must believe that the benefits of dating Jonah outweigh those costs.