Doug’s book has a provocative idea: people are always and everywhere motivated by Greed. Just what does this mean? John asks: Isn’t it a bit off putting to think this is the one and only motivation for human behaviour – and wrong, since many of us do clearly feel we are not greedy people? ” Doug replies….. (8 minutes long)
Here are two short clips going over the exposition of industry or market supply curves and the forces pushing for equilibrium – and the zero profit theorem – in the neoclassical model (ch 8)
When firms are identical in their cost structures:
When firms differ in their cost structures:
A short clip based on question Ch 6 #21 that discusses the special case where consumers only want to buy at most one unit of a commodity. The example shows that Market demand can be more or less elastic not by willingness of buyers to buy more or less, but because additional buyers will enter or exit from the “margin” of trade. First we simply construct the aggregate demand curve from the [horizontal sum of] individual demand curves – both of which have a staircase shape – then we interpret what is meant by the marginal consumer, intra marginal consumers, extra marginal consumers …..in a market, at a given price. The concepts of intensive and extensive margins of a market are explained.
This clip may (but maybe not!) a little clearer than how it was explained in call (May 25)
Above is a short (first 7-9 minutes only) clip from Nobel Prize winning economist Robert Shiller’s Coursera.org course on finance. This is an excerpt form a lecture on the development of futures markets and future’s exchanges – relevant to us becasue he has a very interesting and little known history lesson about how modern future’s trading started way back in the 17th century in open outcry rice market trading in Japan. (PS Next time it comes online on coursera.org you definitely want to “sit in” on it – or you can go directly to Open Yale: so for example essentially the same topic is in Lecture 15 part 2 here on open yale)
Econ 103 students: your task is this: What as the problem in the Dojima Japan open outcry rice markets in the 17th century that we did NOT have in our open-outcry auction market in class Tuesday May 12? Shiller also discusses a solution – the development of a rice futures market at that early time – which you may find interesting to listen to. Did we have that solution in our experimental market? DId we need it?