Journal topic #17: Tragedy of the Commons Experiment

The fishing game was indeed very fun~ In our group, we were more like communists, who were trying to build up an equal society by sharing same amount of resources; therefore, each one of us takes only one chocolate from each round in order to maximize amount of fish at the end of each round. At the end, each though we first reached consensus that we were going to share equal amount of chocolate together , people were just trying to get as many chocolate as possible at the last round, because they knew that was only time they could maximize their profit respectively. Sacrificing was necessary in this fishing game, as I mentioned earlier; as a result of we will eventually get abundant chocolate if each one of us only got one on each round. Regardless of fishing skill, we were looking forwards that we might eventually maximize benefits not only for ourselves but also for others, which was similar to the concept we were discussing about on Journal #16. Nowadays, looking at the scenario happened in our group, we can see even though we have understanding on the concept of we should not only make the best for ourselves but also for others in order to maximize our profits, some people still think irrationally in order to earn profit immediately... An example of local common will be student library, where offers comfortable tables and chairs for those students who are preparing for exams; however, the number of chairs and tables are limited; therefore, students need to set their studying time in order to let other students have opportunity to use those materials, too. Examples of renewable natural resource can be sunlight, and air. And example of global common will be outer space, because there's no territory being claimed in this area, and any countries, who are capable, can explore to outer space. In conclusion, like we talked about in Journal#16, in order to maximize the profit, we, as individual, have to make the best for not only ourselves but also other people~

Journal Entry #16: Topic: Game Theory and Chicken

In my opinion, Game Theory, which assumes people make rational decisions, might not always be valid; as a result of if every people in the group makes rational decisions, those decision might interfere with others, and the circumstance will end up with inefficiency. Conversely, people should make decisions that are best for not only themselves but also the group. The bad outcome is not necessarily always inevitable. In order to avoid bad aftermath, people, as a group, should always determine what is the best for them and what is the best for the group. For instance, according to the video "Ignore the Blond," if everyone goes for the Blond, they will block each others' ways, and if they subsequently go for the Blond's friends, her friends will give cold shoulder, because no one likes being secondary option; however, if no one goes for the blond, but goes for what is the best for them, each one of them will get a girl. Even though no one gets the blond, each one of them is going what is the best for group.
Eventually, Nash makes Adam Smith theory better by stating that the circumstance will be better outcome if everyone in the group is doing not only the best for themselves but also the best for the group.

Journal Entry #15: Topic: What is a Monopoly?

Different economists might have various interpretations on "What is a Monopoly?"; however, those differences have three commonalities, which are one single seller in the market, an unique product, and barriers to entry keep other competitors out. Since monopoly firm has no competitors, people might ask, how do they determine product's price? By looking at the graph of monopoly firm, we can see there are marginal cost, marginal revenue and demand curve. This is crucial for monopoly firm; as a result of a monopoly firm has to discover a point, where marginal revenue equals to marginal cost in order to maximize its profit. A monopoly firm has the benefit of controlling the entire market price of certain product, and a firm can also use advertisement to demonstrate the product's uniqueness in order to attract more consumers. Costs of Monopoly happen when a monopolist produces less output and sells it at a higher price than a perfectly competitive firm. According to the video, economists dislike monopoly ; as a result of its inefficiency. Personally, I think CollegeBoard is a good monopoly firm, because the creation of this monopoly balances the fairness of standardized test. Everyone has equal opportunity to demonstrate their academic performances. I think it's worthy to attain Monopoly because we can minimize those influential factors, which could cause by other competitive firms, while maximizing our profits in the market.

Topic 14 - Productivity Experiment

After having this experience, I think I am more familiar with the concepts that were being introduced in “Short-Run” section. However, I think the experiment was slightly different from the examples we used in the book because we had Gary, who could be a bias examiner. I could tell that he was being very strict on checking each widget, but at the end, he stopped scrutinizing in order to have more outputs. Comparing the with the table in the book, we can see our data was kind of inaccurate, because the numbers of output were supposed to increase as the company had more workers. And at the end, the numbers of workers were exceeding the numbers of technologies, which weakened the inefficiencies of the work. In order to maximize the benefits, I think the company needed to improve its technologies, such as having plant1 or plant2; for instance, we should let Brandon, who was the first worker, manipulated more advanced technologies like plant 1 to plant 4; therefore, our data will be more completed. This experience is very interesting, and after the activity, we calculate the data we collected which make us understand more thoroughly on this chapter. 

Topic 13: The Return of the Zeppelin

The explosion of Hindenburg had brought tremendous impacts on both demand and supply of Zeppelin. Subsequently, people had apprehension of riding Zeppelin; as a result of they were afraid identical accident might happen again. Fortunately, nowadays, Zeppelin started getting back consumers' trust by having better quality and safety. I will consider both Zeppelin and Airship Venture are oligopolies, because the competition of airship is so small that Zeppelin Airship Venture are capable of dominating the market. Well... Airship travel seems very interesting to me, but I guess I will only ride once... personally, I think even though Zeppelin might be one of the biggest airship company in the world, airship is not something that people will like to ride many times... even though the company has strengthened airship's quality, people, like me, might need have concern about its safety... and will not be willing to spend money on risking our lives. But if today I am at age of 60 something, I will probably wish to ride on it, because at that time, death will not seem to be a big concern to me. And yep, I think most of adults or teenagers will still think taking airplane is safer. 

Topic 12: Pizza for Pesos?

Hispanic Immigrant in United States has always been a problem; however, Pizza Patron starts accepting people to use pesos with dollars and credit card to purchase pizza. The head of Pizza Patron wants to give convenience to consumers who possess pesos. And from my point of view, I think the idea of pizza for pesos relate to utility because this economic strategy might attract consumers who accept or like Hispanic culture; conversely, it might also distract to consumers who does not have inclination to Hispanic culture. According to the video, we can see that many consumers are complaining that Pizza Patron accept pesos, because accepting pesos in American can undermine American culture. Illegal immigrant has already been a problem; therefore, this acceptance might just escalate the problem. Exchange rate is considered as another serious problem. By exchanging dollars from USD to Pesos, supplier and consumer will eventually cause a gap between accuracy and fairness of exchange rate. In other words, using different currency might make the trading more intricate or cause unnecessary problem. Why illegal immigration is such a big concern? Statistically, nowadays there are 800 billions dollars in Hispanic market, which means American’s jobs are being undermined by this immigration. 

Topic 11: Brand Names And Utility

In nowadays society, people have certain inclination to buy certain product. By looking at the demonstration in the video, even though there are many kinds of peanut butter, consumers still choose the one that might be the cheapest. Choosing cheap product not only because consumers want to save money but also because consumers seem to care about products' price more than products' brand. Personally, I don't have high utility on buying famous brand of food. I can easily be satisfied as long as I think food's quality is as same as its price. However, sometimes, I have high utility on buying clothing stuff. Comparing my demand curves with non-name products, I will not buy non-name products, even though it is sold in a low price. Conversely, if it's famous brand such as Nike, or Adidas, then my quantity of demand will increase while the price of the clothes is decreasing. For instance, if a Nike T-shirt costs 1000, I will probably only buy one; however, if the price of T-shirt decreases, then I will probably go for two. In conclusion, every people have different utility towards different products; therefore, companies have to figure out what product they made can attract most of people with high utility. 

Topic 10: Consumer Preference and Utility

In this contemporary society, sellers have been using different attractive and intelligent strategies in order to get consumers’ attention. For instance, nowadays teenagers from age 12 to 24 have tendency to buy products Skechers not only because it’s fashionable but also because it’s comfortable. Using advertising in magazine, Skechers Company is trying to promote its products by passing down information from one to another. In order to be the most competitive, Skechers Company has been inventing creative product such as roller blades, and leather boots. Creativity is essential in contemporary market, especially for teenagers. Skechers had located many stores in New York and Los Angeles, where are considered as one of the most popular and famous cities. In such urban area, Skechers believe they will receive more consumers. Skechers’ strategy was successful, because once it spreads out the popularity of its product, teenagers will tend to buy more not only because they become permanent consumers but also because their friends affect them to buy. Personally, I have high utility on Apple products. Actually, I think many people have high utility on Apple products. Apple Company has been innovatively created many new electronic products, which are both more useful and stylish than other products. For the products that I have low utility but other might have higher are scissors for cutting hair. One of the most expensive scissor can cost as much as iPhone.