Class Notes (1,100,000)
CA (650,000)
Ryerson (30,000)
ECN (1,000)
ECN 340 (200)
Lecture 8

ECN 340 Lecture Notes - Lecture 8: Coordination Game, Thomas Schelling, John Von Neumann

Course Code
ECN 340
Thomas Barbiero

This preview shows page 1. to view the full 4 pages of the document.
Summary From Last Class: price of food is dropping, more will consume, downward
Price of Gasoline: has gone down, people drive more walk less, jobs are less strenuous
because they loose power
Growth of Out of Home Meals: more fast food restaurants in low income area
Minimum Wage: has gone down, poverty has added to weight gain
Women’s Place: women increasingly work outside the house, used to cook meals but
may be “too tired” when they return home from their work day
Breastfeeding: fewer women are breastfeeding because of the cost (having a career;
too busy), more formula is used in general
Smoking: people who smoke are less overweight
-Smoking dulls the sense of smell and raises the body’s metabolism
-Smokers that quit usually gain 5-10lbs
Chapter 2 Hartford; Fat Economics
Medical Technology and Weight Gain:
-People like eating, it is pleasurable
-Advances in the treatment of diabetes has reduced the full cost of over-eating; diabetes
is often the by product of obesity
-In the same vein, the development of laser technology to remove tattoos has increased
the popularity of tattoos
-Recall that when safety features in car were introduced, the private costs of accidents
fell and people drove more recklessly
-This is the “Peltzman Effect” which refers to the “down sloping demand curve”-reduce
the costs of reckless driving and people will do more of it
Techonologic Advancements; Plentiful Food:
-Perhaps the major culprit in weight gain has been technological advancement related
to preparing food
-There has been dramatic advancement in ready to eat manufactured foods including,
1. Preventing spoilage from microorganism (constant threat in all of human history;
Christopher Columbus sailed was to find a route to the far east where there were
spices, spices were used to conserve food
2. Preserving flavor and moisture in the distribution process and then held in pantries
and refrigerators.
-We eat more because It now takes little time to put together a meal or a snack
-French fries were rare before 1950 because of the huge amount of time it would take
-The microwave has also greatly decreased the cost of preparation
-You can now order fast food via smart phone
-Farm technology also added to the fall in full price of food
-Any public policy that increase he full price will help bring down the number of
The Allure of Fat Labels and Taxes:
-Many large restaurant chains now post the calories in each item
You're Reading a Preview

Unlock to view full version