The Economics of The Office
Learning economics from the world's best boss
Buyout
Michael realizes that he is in a better bargaining position than he might have earlier realized. Even though his strategy is irrational because he should be desperate to sell, he takes a game theory optimal approach because David Wallace’s utility function does not match that of Dunder Mifflin as a company. We could also label this clip as a demonstration of the “Principal Agent Problem” because David is the principal acting on behalf of all Dunder Mifflin Shareholders.
Microeconomic Behavior: Underlying Principles (D01) Production and Cost (D24)
Cyclical Unemployment
Pam discusses her difficulty finding a job in a difficult economy.
Teaching of Economics (A20) Unemployment (J60)