Insurance Markets

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, …

Trade-Offs and Marginal Analysis

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 …

Production Possibilities Frontier

Season 5, Episode 8: Arya tells story of how she would reinvest her daily profits, first for a second bucket to bring to the market, then for a cart. This allowed Arya to bring more goods to the market and make great profits. Standard economic models show that with an increase in capital – which …