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.
If you are interested in participating, please go to the following
web site for more information:
web.econ.ucsb.edu/study/signup
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…