Categories
Labor Principles

Determining Shift Assignments

Amy asks Garett to finish the shift assignments, but he’d rather finish eating his lunch. Mateo jumps at the opportunity to make shift assignments and provide retribution for wrongs that have been done.

Categories
Consumer Choice & Behavioral crime Principles

A Truck with No Radio

As Dina and Amy go searching for Bo, Amy notices that Dina doesn’t have a radio in her truck. It turns out that Dina special-ordered her truck without a radio (even though it costs more) because she believes it would make her truck less appealing to potential thieves. If criminals behave rationally (which Gary Becker argued that most do), a truck without a radio wouldn’t be worth the potential cost associated with car theft. Dina has removed the incentive to steal her truck.

Categories
Consumer Choice & Behavioral

Nonrefundable Movie Ticket

Glenn wanted to see Saw because he thought it was about carpentry, but he quickly realized it was a horror movie. He wasn’t having a good time and even threw up in his lap, but his wife didn’t want to leave because they paid for the ticket and it was date night. Glenn and his wife should have left if they weren’t enjoying their movie since the tickets were non-refundable, but like many people, Glenn and his wife fell for the sunk cost fallacy.