Journal topic #17: Tragedy of the Commons Experiment

this game was fun. First of all, in our team, everyone takes only one fish so at the end the fishes were overcrowded in the lake. No one tries to take as many as possible because they know that if they do that the fishes will get less, and they're trying to do is to let the fish to grow as many as possible and then try to catch them in the end of the round. in society, people don't reward those with the most because they are killing the fishes and causing the ecosystem to be damaged. No one tries to take too many fish. People aren't reward fir doing so. In the second game we still made the fishes grow and then catch them but the only difference is that we started to catch them in the last three rounds. it's not possible because both of the number aren't suppose to be compared. Yes, in cafeteria, people try to cut lines and get many food to benefit themselves but the result is that other people won't have any food for them to eat. However, when the food is really bad, food becomes overproduced and later becomes a waste. Natural resources such as fish, crab, lobster, and other. People can use 

Journal Entry #16: Topic: Game Theory and Chicken

The prisoner’s dilemma is a canonical example of a game analyzed in game theory that shows why two individuals might not cooperate, even if it appears that it is in their best interests to do so. In the game theory, Adamn Smith wants people to act a way that everyone gets benefits but it’s erally hard because everyone wants to act in a way where they can pursue their self interest. Game theory can prevent people from doing the wrong decision as a whole but it’s not possible to be exert into real life situation. Bad outcome is unavoidable of course because people like to like in their self interest, and when someone act in their self interest they cause other to act like them or cause other to act in another way which they won’t get benefit as a group. Bad outcome can be avoidable when people cooperate together. A better outcome occur is when two people doesn’t act in a similar way such as one confess and one doesn’t then both of them will get one year sentence. However it’s impossible because people act in their self interest, and that means that they want to get the least sentences they could and don’t care about what another person gets. It’s really hard to get a good outcome if they don’t cooperate. 

Journal Entry #15: Topic: What is a Monopoly?

The monopoly is a market with a single firm that produces a good or service for which no close substitute exists and that is protected by a barrier that prevents other firms from selling that good or service. In a monopoly, the supplier decides the produce and what price to change from the supply and demand curve which it’s trying to make the marginal cost and marginal revenue the same, maximizing economic profit. The cost for the monopoly is that the monopolist needs to figure out how to produce or control the market price, and the benefit is that the monopolist can control market price by maintaining their business or company because they’re no close substitute. They are concerned about inefficiency because inefficiency might have inefficiency on resources that a lot of waste is produced. High markup, for example the diamonds, are one of those monopoly that doesn’t give enough money to the Africans who get their diamonds for the supplier. Economist doesn’t like monopoly is that it transfers income away from consumers to monopolists. Economist doesn’t like inefficiency because on one can entry the business because a single seller or the first seller will benefit the most comparing to the new adding business in monopoly. Their benefits, monopoly, are innovation and creation that a firm gets a patent. It’s is worth it because if you contain a monopoly continuously then you’re stil the price controller and therefore you can still get your benefits.