The Economics of The Office
Learning economics from the world's best boss
Huge Turnaround for Profit
Dwight corners the market on Princess Unicorn dolls! This is a good opportunity to discuss the relationship between expected future prices and changes in demand. Dwight knew that the demand for these dolls would increase as Christmas drew closer. Advanced students should be able to draw a supply and demand graph for this market and see that in the very short run the supply of this good is perfectly inelastic in the Scranton area. This makes the profit opportunity for Dwight even greater.
Season 5 Episode 11 "Moroccan Christmas"
Information and Market Efficiency (G14) Microeconomic Behavior: Underlying Principles (D01)
FaLaLa CaChing
Dwight corners the market on Princess Unicorn dolls! This is a good opportunity to discuss the relationship between expected future prices and changes in demand. Dwight knew that the demand for these dolls would increase as Christmas drew closer. Advanced students should be able to draw a supply and demand graph for this market and see that in the very short run the supply of this good is perfectly inelastic in the Scranton area. This makes the profit opportunity for Dwight even greater.
Season 5 Episode 11 "Moroccan Christmas"
Information and Market Efficiency (G14) Microeconomic Behavior: Underlying Principles (D01)
Arbitrage
In this example Dwight exploits an arbitrage opportunity. He buys a good at a low price and then sells it at a much higher price. We think in efficient markets consumers or firms will look to exploit these opportunities until they no longer exist.
Season 4 Episode 16 "Did I Stutter?"
Information and Market Efficiency (G14) Microeconomic Behavior: Underlying Principles (D01)
Babysitter
In this clip, Jim and Pam discuss how difficult it is to find a good babysitter for their kids. They are only willing to hire a babysitter with highly specialized skills. Therefore, they should be expected to pay a premium price for a sitter. It's not that there is a shortage of available babysitters as much as there is a shortage of sitter who have demonstrated the skill set they think is required.
Season 4 Episode 3 "Andy's Play"
Information and Market Efficiency (G14) Microeconomic Behavior: Underlying Principles (D01)
Flowers
In this clip, Michael tries to buy flowers only to discover how expensive they are. This is a good example of the relationship between price elasticity of demand and the availability of substitute goods. Also we see that when the price of a good is above someone's reservation price, they will either go without the good or purchase a substitute good.
Season 4 Episode 3 "Andy's Play"
Microeconomic Behavior: Underlying Principles (D01) Market Structure and Pricing (D40)
Jacket
Kevin buys a jacket. Students should be able to demonstrate that putting Kevin's name on the jacket shifted his demand curve for this good to the right.
Season 4 Episode 3 "Andy's Play"
Microeconomic Behavior: Underlying Principles (D01)
Landlord Dwight
When Dwight becomes the office's landlord he sets up a coffee shop in the foyer and installs motion sensors on the lights. Dwight is able to charge high prices in the coffee shop because its location gives him monopoly power. His efforts to cut costs are an example of incentives at work.
Microeconomic Behavior: Underlying Principles (D01) Production and Cost (D24) Monopoly (D42)
Commission Skit
Michael and Dwight dress up in costume and act out a skit to try to convince the office to reject a corporate policy change in commissions. Michael inadvertently makes the case that the new policy can only make them better off. This is an example of evaluating decisions at the margin.
Season 7 Episode 6 "Costume Contest"
Microeconomic Behavior: Underlying Principles (D01)
Commission Cap Part 1
Jim loses his incentive to work when corporate institutes a cap on commissions.
Season 7 Episode 9 "WUPHF.com"
Microeconomic Behavior: Underlying Principles (D01) Compensation Packages (J33) Wage Level and Structure (J31)
Commission Cap Part 2
After Jim loses his incentive to sell, he looks for other ways to fill his time. A good example of incentives.
Season 7 Episode 9 "WUPHF.com"
Microeconomic Behavior: Underlying Principles (D01) Wage Level and Structure (J31) Compensation Packages (J33)