1. Congestion Externalities

2. There are two ways to travel from A to B and 2000 commuters make this trip every day. One route always takes 40 minutes. The other route takes 20+(N/40) minutes where N is the number of travelers using this route. Travellers want to minimize travel time. They are indifferent between the two routes when 1.N=1600 2.N=1200 3.N=1000 4.N=800 5.N=600

3. Your opponent has hidden a prize in one of the boxes below. He wants you not to find it. Your goal is to find it. You can only open one box. Which box will you open? Box 1Box 2Box 3 Box 4 1.Box 1 2.Box 2 3.Box 3 4.Box 4

4. You must hide a prize in one of the boxes below. Your opponent will try to find it by opening just one box. Your goal is for him not to find it. In which box will you hide it? Box 1Box 2Box 3 Box 4 1.Box 1 2.Box 2 3.Box 3 4.Box 4

5. Your opponent has hidden a prize in one of the boxes below. He wants you not to find it. Your goal is to find it. You can only open one box. Which box will you open? Box 1Box 2Box 3 Box 4 1.Box 1 2.Box 2 3.Box 3 4.Box 4

6. You must hide a prize in one of the boxes below. Your opponent will try to find it by opening just one box. Your goal is for him not to find it. In which box will you hide it? Box 1Box 2Box 3 Box 4 1.Box 1 2.Box 2 3.Box 3 4.Box 4

7. And on to our lecture…