Economics Experiment Are you interested in participating in an economics experiment where you will have chance to win a new iPod Touch (with video, wireless.

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Presentation transcript:

Economics Experiment Are you interested in participating in an economics experiment where you will have chance to win a new iPod Touch (with video, wireless internet and 16GB storage) ? The experiment involves answering multiple-choice questions based on material in this course. The experiment will take place online. web.econ.ucsb.edu/study/signup If you are interested in participating, please go to the following web site for more information:

Externalities

Quiz 2 on Monday Covers all chapters that we have completed with greater emphasis on material covered since first quiz. There will not be questions on externalities. There will be 20 questions.

Do you wish your apartment or dormitory were less noisy? A)Yes B) No C)Doesn’t apply. I don’t live in an apartment or dormitory.

A commuting game. You have two ways to commute from home to work. –The short way by narrow road –The long way by freeway Commute time by freeway is always 30 minutes. Commute time by narrow road depends on how many others take narrow road.

Your choice If N people go short way, it takes 15+N/10 minutes to make the trip. Freeway always takes 30 minutes You hate commuting and want to minimize travel time. Choose your route using Clickers. We’ll do this repeatedly, simulating commuter days.

Your score for the day. Everybody gets 5 points per trial. Those who spend less than the mean amount of commuting time in total get an extra 5 points. Whoever spends least time commuting gets $20. (If a tie, winner determined by lottery. You must choose one way or the other. If you don’t click either option, you are assessed 1 hour commuting time.

Day 1: I will travel by the A) Short way B) Freeway

Day 2: I will travel by the A) Short way B) Freeway

Day 3: I will travel by the A) Short way B) Freeway

Day 4: I will travel by the A) Short way B) Freeway

Day 5: I will travel by the A) Short way B) Freeway

Lets move on to our lecture…