6.2/6.3

• Economie
• Middelbare school
• havo
• Leerjaar 3

Chapter 6

6.2 One offering is different from the other

6.3 Who will profit?

Planning

Quick review

Check homework

Explanation 6.2/6.3

Do the questions

Quick review

Answer the following questions:

1. Why do we use game theory in economics?
2. What is the prisoner's dilemma?
3. What is self-binding and why does it play an important role in solving a prisoner's dilemma?

Discuss homework

Q 1 - 13 from section 6.1

Any questions??

6.2 

One offering is different from the other?

Individual products

These goods and services are traded on the market and a price can be set for them

As a consumer you can be excluded from these products

Individual goods are competetive, once somebody buys it, it isn't there anymore for somebody else

Collective goods

Goods produced by the government and available for everybody are collective goods

It is not possible to exclude people from them

Collective goods are not competitive

Quasi collective goods

Quasi collective goods or semi-collective goods are individual goods produced by the government

For example: education

6.3 

Who will profit?

Different interests

Individual interest - the interest of one participant

-> thinking about what is best for your self may not result in the most optimal outcome

Collective interest - serving everybody's individual interest as good as possible

-> result in the most optimal outcome, but can only happen if the participants cooperate

Collective sector

The sector responsible for the production of collective goods

The collective sector is a term for all government institutions and the institutions for social security

Institutions for social security are responsible for giving benefits to people who are entitled to get one

External effects

External effect of production when others than buyers and suppliers are affected by it

Positive external effect - nice smell from fresh baked bread at a bakery

Negative external effect - noise pollution from an airport

SO Chapter 6

23rd of May

During class

Section 6.1, 6.2 and 6.3

Next week: review chapter 6

Get to work!

Do Q 14 - 28 (= HOMEWORK)

Questions? Raise your hand
Quietly discuss with your neighbour

NO music