Economics Experiment Are you interested in participating in an economics experiment where you will have chance to win a new iPod Touch (with video, wireless.

Economics ExperimentAre you interested in participating in an economics experiment where you will have chance to win a new iPod Touch (with video, wireless internet

and 16GB storage) ? The experiment involves answering multiple-choice questions based on material in this

course. The experiment will take place online.

web.econ.ucsb.edu/study/signup

If you are interested in participating, please go to the following web site for more information:

Externalities

Quiz 2 on Monday

• Covers all chapters that we have completed

with greater emphasis on material covered since first quiz.

• There will not be questions on externalities.

• There will be 20 questions.

Do you wish your apartment or dormitory were less noisy?

A) YesB) No C) Doesn’t apply. I don’t live in an apartment

or dormitory.

A commuting game.

• You have two ways to commute from home to work. – The short way by narrow road– The long way by freeway

• Commute time by freeway is always 30 minutes.

• Commute time by narrow road depends on how many others take narrow road.

Your choice

• If N people go short way, it takes 15+N/10 minutes to make the trip.

• Freeway always takes 30 minutes

• You hate commuting and want to minimize

travel time.

• Choose your route using Clickers. We’ll do this repeatedly, simulating commuter days.

Your score for the day.

• Everybody gets 5 points per trial. Those who spend less than the mean amount of commuting time in total get an extra 5 points. Whoever spends least time commuting gets $20. (If a tie, winner determined by lottery.

• You must choose one way or the other. If you don’t click either option, you are assessed 1 hour commuting time.

Day 1: I will travel by the

A) Short way

B) Freeway

Day 2: I will travel by the

A) Short way

B) Freeway

Day 3: I will travel by the

A) Short way

B) Freeway

Day 4: I will travel by the

A) Short way

B) Freeway

Day 5: I will travel by the

A) Short way

B) Freeway

Lets move on to our lecture…