Economic Lessons from Seinfeld
Ever confused about economics concepts like cost-benefit analysis or externality? Perhaps a new site that uses Seinfeld to illustrate them can help.
Ever confused about economics concepts like cost-benefit analysis or externality? Perhaps Seinfeld can help. The site The Economics of Seinfeld uses plots from the show to illustrate certain principles, like this one from the episode "The Chicken Roaster":
A Kenny Rogers Roaster restaurant opens across the street from Kramer. He can't stand the red glare from Kenny's neon sign, and moves into Jerry's apartment. But he becomes hooked on Kenny's chicken, and eventually accepts the red glare in exchange for access to the chicken. When Kenny's shuts down, the lights go out, and Kramer's overall welfare falls—the benefits of the chicken outweighed the cost of the glare.
The site has examples from many episodes, and will help you master concepts like rationing mechanisms, opportunity cost, rate of time preference, and many more.