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 …
Read more “Cersei’s Realization: The Principal-Agent Problem in Imperial Governance”
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.
Season 1, Episode 3: The Night’s Watch is a public good. They protect the Seven Kingdoms from white walkers and wildlings. But like most public goods, the Night’s Watch is underfunded – which is a market failure. In this clip, we see Aemon appealing to Lord Tyrion to help convince the King and Queen for …