Season 1 Episode 4: Rooms at the Inn are sold out – the quantity demanded exceeded the quantity supplied. Because of this, Tyrion offers a big premium to anyone who will sell him their room. This increase in price is consistent with market analysis when demand exceeds supply. It is also what we see in …
Season 5 Episode 8: Arya and Jaqen H’ghar discuss the case where someone bets that their ship won’t successfully make the voyage, i.e., that he will die. In essence, they are discussing the ship captain taking life insurance, as the family will be paid if the captain dies. Life insurance is common in the US, …
Season 5 Episode 9: Mace Tyrell and a representative from the Iron Bank are discussing the ethics of charging interest for loans. It is noted that high interest payments are seen by some as distasteful and there are threats of legal actions for higher interest payments. Throughout history, in fact, there are times where certain …
Season 7 Episode 1: Sam Tarley discovers where a cache of dragonglass is. Given the value of dragonglass, this immediately improves the outlook for society. The value of finding a valuable resource will improve production possibilities, and will mean society can produce more goods. To teach this concept in the classroom, click here for a lesson plan
Season 7 Episode 4: When there is creative destruction – i.e., new industries are formed and help make old jobs and industries obsolete, it can be chaotic. Bran tells Little Finger in this clip that “chaos is a ladder”, which is certainly true for career opportunities for those who enter into organizations and markets when …
Season 7, Episode 3: The Iron Bank of Braavos discusses their activity with the Master of Coin Mace Tyrell and states “we don’t make bets. We invest in endeavors we deem to be successful.” This highlights how banks try to make a profit where the odds are in their favor as opposed to different forms …
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Season 3 Episode 9: Robb and Catelyn are considering attacking Casterly Rock, but can only do so with Walder Frey’s men. Must cement coalition with a marriage. To teach this concept in the classroom, click here for a lesson plan
Season 7 Episode 4: Cersei invades Highgarden, coming into possession of much gold and with it she pays off the kingdom’s debts to the Iron Bank of Bravos. The Iron Bank had become fond of the interest payments the kingdom’s debts were building up and by paying off the debt the interest payments ended. This …
Season 5 Episode 8: Olly, a victim of violence from the Wildlings, asks Samuel Tarly why Jon Snow intends to help people who have been the Night’s Watch enemies for years. Samuel explains that in order to fend off against the White Walkers, Jon must have the strength of the Wilding army on his side …
Read more “Jon Snow’s Trade-Offs: Allies Against the White Walkers”
Season 1 Episode 3: There is a discussion on inefficient government spending (for the hand’s tournament). Government spending should almost always be more inefficient than private sector spending because governments don’t face the same constraint consumers do when spending on items that give the highest marginal utility per dollar. To teach this concept in the …
Read more “The Hand’s Tournament: Government Spending Under Fire”