Scot Wick Blog

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 22 of 36 Frontiers of Microeconomics Section 5 of 19 … The three topics of this chapter 1- the economics of asymmetric information 2- political economy 3- behavioral economics … 1- The economics of asymmetric information, continued A large corporation must deal with issues that do not arise in a small privately-owned business. From a legal standpoint · a corporation is an organization · that is granted a charter recognizing it as a separate legal entity · with its own rights and responsibilities · distinct and separate from those of its owners and employees From an economic standpoint the most important feature of the corporate form of organization is the separation of ownership and control. One group of people, the shareholders, own the corporation and share in its risks and profits. Another group of people, the managers, are employed by the corporation to make decis...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 22 of 36 Frontiers of Microeconomics Section 4 of 18 … The economics of asymmetric information, continued. The general definition of moral hazard is the lack of incentive to guard against risk where one is protected from its consequences. In microeconomics moral hazard specifically is a problem that arises when · one person, the agent, is performing some task · on behalf of another person, the principal If the principal cannot perfectly monitor the agent's behavior the agent tends to make less effort than the principal considers desirable. The agent is protected from consequences due to asymmetrical information. … A classic moral hazard example is the employer-employee relationship. The employer is the principal, and the worker is the agent. The moral hazard problem is the temptation of imperfectly monitored workers to shirk their responsibilities, to not make the ful...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 22 of 36 Frontiers of Microeconomics Section 3 of 18 … This chapter on microeconomics considers three topics at the discipline's frontier: 1- The economics of asymmetric information 2- Political economy 3- Behavioral economics … 1- The economics of asymmetric information Information asymmetry is a difference in knowledge of and access to relevant information by different persons involved in a matter. Often one person has more information than another about a matter being considered. Awareness of asymmetric information can shed light on many aspects of the world from the market for used cars to the custom of gift giving. … Examples of information asymmetry: A worker knows more than his employer about how much effort he makes doing his job. A used car seller knows more than the buyer about the car's condition. In each case the uninformed party, the employer and the ...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 22 of 36 Frontiers of Microeconomics Section 2 of 18 … Economics is a study of the choices people make and the resulting interactions the choices have with one another. The study has many facets, yet it would be a mistake to think all the facets present a finished jewel, perfect and unchanging. Like all scientists, economists are always on the lookout for new areas to study and new phenomena to explain. … This chapter on microeconomics considers three topics at the discipline's frontier: 1- The economics of asymmetric information 2- Political economy 3- Behavioral economics … 1- The economics of asymmetric information Often in life some people are better informed than others, e.g. the seller can know some flaw in a product the buyer doesn’t. This difference in information affects the choices people make and how people deal with one another. 2- Political economy Politi...

  Fumiko Scot's information: Weight at 165 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 168. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, now eat right and light, and get enough exercise. Now am spending most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on ba...

“The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents would hav...