The Economics of The Office

Learning economics from the world's best boss

Pretzel Day 3

Even when something comes at a zero monetary cost it may cost considerable time to get something for "free". How much money would you spend for a pretzel? What is the value of the time that Michael and Stanley are spending standing in line? Is a pretzel really worth that much?

Season 3 Episode 5 "Initiation"

Labor Productivity (J24) Behavioral Economics (D03)

Michael Pam

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The Incentive

When Andy becomes the new manager, he institutes a 'points system' to incentivize the office to sell more paper. His plan works better than expected when he offers to tattoo himself as the grand prize. This clip is a funny example of the power of incentives.

Season 8 Episode 2 "The Incentive"

Labor Productivity (J24) Microeconomic Behavior: Underlying Principles (D01) Compensation Packages (J33)

Phyllis Pam Stanley Dwight Jim Andy

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Pretzel Day 1

Even when something comes at a zero monetary cost it may cost considerable time to get something for "free". How much money would you spend for a pretzel? What is the value of the time that Michael and Stanley are spending standing in line? Is a pretzel really worth that much?

Season 3 Episode 5 "Initiation"

Labor Productivity (J24) Behavioral Economics (D03)

Pam

Watch »

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