Lord Frey has Bargaining Advantage in Game of Thrones
Season 1, Episode 9: The Starks want to safely cross water but need Lord Frey’s position. They are in a bad position and he is reluctant and in a good position. In bargaining, we’d say that the Stark’s Best Alternative to a Negotiated Agreement (BATNA) was low while Lord Frey’s was high. As bargaining theory …
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Trade Restrictions Cause Chicken Prices to Increase in House of the Dragon
A family is discussing the implications of a blockade. The prices for chicken have tripled, which is consistent with a decrease in supply. There is also discussions of hoarding of food, the blockades, and whether the king will do something to help.
Unintended Consequences
Season 5 Episode 7: In this clip, Cersei is cornered by the High Sparrow, the religious leader in the Seven Kingdoms. Cersei empowered the High Sparrow to attack her political opponents, but he eventually turned on Cersei and imprisoned her. This is an example of unintended consequences. Often, governments will implement economic policies without considering …
Complementary Goods
Season 5 Episode 7: In this clip, Jorah is sold to a slaver who plans to use Jorah as a fighter in a fighting pit. To stop this, Tyrion argues that he is also a great fighter and that he and Jorah are a team. The other slaver finds Tyrion funny and decides to buy …
Game Theory in House of the Dragon: A Mixed Strategy for the Prince’s Life
The assassins (Blood and Cheese) break in and want to kill Prince Jaehaerys. They don’t know which sleeping child is the prince, however. Their mother (the Queen Helaena) is asked to reveal which one is the prince. The Queen doesn’t want the heir to the throne to be killed and the assassins want to kill …
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Principal Agent Problem in Imperial China
Season 1, Episode 3: In this clip, Cersei tells her son “The North cannot be held…not by an outsider. It’s too big and too wild.” This can help us understand the principal-agent problem. The principal-agent problem states there is a conflict in priorities between the principal – normally an emperor or some type of ruler …
Abolition of Slavery and Path Dependency
Season 4, Episode 10: In this clip, a former slave asks Daenerys to allow him to sell himself back to his master, citing poverty and problems with current benefits to the newly freed. This is related to the idea of path dependency, Path dependency is the idea that history matters: it’s easier or more cost-effective …
Broken Windows Fallacy
Season 5 Episode 9: Prince Doran Martell decides to ‘break bread’ with the Lannisters instead of waging war over past grievances. Ellaria Sand questions his decision, but Doran explains the cost of war. This is similar to the broken window fallacy. The broken window fallacy argues that spending money on infrastructure and goods that have …
Normative v.s. Positive Statements
Season 5 Episode 9: In this clip, Tyrion explains to Hizdahr zo Loraq why he doesn’t approve of the fighting pit. Hizdahr retorts: “What great thing has ever been accomplished without killing or cruelty?” Tyrion then informs Hizdahr of the error in reasoning he made. Tyrion is making a normative claim about the fighting pits. …