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Seinfeld: a Show About Economics and Irrationality

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Seinfeld: a Show About Economics and Irrationality The Review: A Journal of Undergraduate Student Research Volume 14 Article 6 2013 Seinfeld: A Show about Economics and Irrationality Josh Sufilka St. John Fisher College, [email protected] Follow this and additional works at: https://fisherpub.sjfc.edu/ur Part of the Economics Commons, and the Television Commons How has open access to Fisher Digital Publications benefited ou?y Recommended Citation Sufilka, Josh. "Seinfeld: A Show about Economics and Irrationality." The Review: A Journal of Undergraduate Student Research 14 (2013): 27-30. Web. [date of access]. <https://fisherpub.sjfc.edu/ur/ vol14/iss1/6>. This document is posted at https://fisherpub.sjfc.edu/ur/vol14/iss1/6 and is brought to you for free and open access by Fisher Digital Publications at St. John Fisher College. For more information, please contact [email protected]. Seinfeld: A Show about Economics and Irrationality Abstract The show Seinfeld is much more than a show about nothing. In each episode, unnoticed by the average viewer, common principles of economics are being presented. However, these principles are being presented in a way that differs from the typical neoclassical economic view, which is every person makes rational decisions. This paper questions the view of the writers, Jerry Seinfeld and Larry David, on their understanding of human behavior. More importantly, by focusing on two episodes, this paper argues that people do not always make rational decisions and as a result, questions neoclassical economics as a whole. This article is available in The Review: A Journal of Undergraduate Student Research: https://fisherpub.sjfc.edu/ur/ vol14/iss1/6 Sufilka: Seinfeld: A Show about Economics and Irrationality Seinfeld: A Show about Economics and Irrationality Josh Sufilka Economics can be found in the most good outweigh the costs” (Mateer 216). This unlikely of places. For instance, after dinner definition does not need to be applied to you sit down to relax and absorb some large scale decisions that affect huge quality television. After many minutes of populations, meaning this definition can channel surfing, you ultimately decide to apply to individual decisions. For example, watch the show Seinfeld. Although the show if a person is deciding to drink alcohol with is known for its comedy, there may be his friends one night, he has to decide if the something hidden in the show unnoticed by benefits outweigh the costs. The benefits the common viewer. Unknowingly you are could be the enjoyment of spending time being presented with principles of with his friends and the costs could be a economics. However, those economic hangover or negative externalities resulting principles are being presented in a way that from the drinking. Based on the principle, may be different than the typical the rational decision an individual makes neoclassical economics principles which should consist of the benefits outweighing supports the theory that all human beings the costs; otherwise the decision would be make rational decisions. The show was irrational. This is where Seinfeld differs primarily written by Jerry Seinfeld and because the show’s characters tend to make Larry David, meaning the show was highly decisions where the costs outweigh the influenced by their view and understanding benefits. of the world. Thus, the economics presented Economic principles were present in the show may reflect their understanding throughout all nine seasons of Seinfeld and of the economic principles and may be numerous episodes would be great examples different than the typical neoclassical of those principles. “The Engagement” understanding. Two economic principles the episode is a perfect demonstration of cost- show consistently contained throughout the benefit analysis. In the episode, a dog living series are cost-benefit analysis and in the courtyard across the street from opportunity cost. However, those principles Elaine’s apartment keeps her up all night are not presented the way a neoclassical barking and causing problems. She decides economist would present them since they to take measures into her own hands, with believe all humans are naturally rational and help from Kramer and Newman, by will always make the rational choice. kidnapping the dog and releasing it far from Because Seinfeld is influenced by the the courtyard in the country. As a result, the opinions of the writers, the show presents dog returns home and Elaine, Kramer, and views of economics differently than typical Newman are caught by the police for economic understanding by having the dognapping. characters make irrational decisions and The cost-benefit analysis principle choices where the costs outweigh the applies to Elaine’s situation. Elaine was benefits. presented with a situation where she had to An economic principle that people make an important decision. The dog was use every day without realizing it is cost- causing many negative externalities which benefit analysis. Cost-benefit analysis is means society was being affected by the defined as “a process used to determine dog’s actions and the removal of the dog whether the benefits of providing a public would make everything better. Elaine’s 27 Published by Fisher Digital Publications, 2013 1 The Review: A Journal of Undergraduate Student Research, Vol. 14 [2013], Art. 6 decision to kidnap the dog presented many same as Jerry’s, but he makes a different costs and benefits. The costs of kidnapping decision. He believes the benefits outweigh the dog would be guilt, the possibility of the costs and asks Susan, his girlfriend, to being arrested, and the possibility of being marry him. Although he makes a more injured during the process of kidnapping the rational decision than Jerry, he quickly dog. On the other hand, the benefits of regrets it and becomes jealous of Jerry’s removing the dog would be health benefits, singleness. Since he regrets getting married, such as more sleep. Based on those facts, the George ultimately is doing the same thing as costs outweighed the benefits, and the Jerry by wanting to remain single. The rational thing would have been to not kidnap desire to remain single does not make sense the dog and to figure out another solution. based on their reasons and cost-benefit This means that the economic principle in analysis, so this is another example how the episode differs from traditional Seinfeld’s principles stray from the neoclassical economic principles because neoclassical viewpoint. A neoclassical Elaine would have made the rational economist would have approached this decision based on cost-benefit analysis. If differently as well. He would have noticed this situation presented itself to a more benefits (using the same reasons as neoclassical economist, he would have dealt George and Jerry) and would have decided with it differently. After performing the that marriage was a better decision than cost-benefit analysis, he would have realized remaining single. The neoclassical view that the costs outweighed the benefits and clearly differs from the view presented in would not have kidnapped the dog. He Seinfeld. would have gone with a more rational Decision making plays an important decision, such as purchasing ear plugs or part in Seinfeld and there are always many continuing to complain to the police. Based factors and variables that come into play on Elaine’s situation, Seinfeld does not when making a decision. The most difficult present the economic principle like a aspect about making a decision is that you neoclassical economist would present it and are ultimately giving up something to do possibly shows a flaw in regards to another thing. The thing you finally decide neoclassical economics: humans do not not to do will become your opportunity cost. always make the rational decision. Opportunity cost is defined as “the highest In the same episode, Jerry and valued alternative that must be sacrificed in George are presented with cost-benefit order to get something else” (Mateer 13). analysis in regard to marriage. The two Although most people do not know the characters consider the costs and benefits of principle, it actually plays a huge part in marriage, but Jerry does not have the same their lives. When a decision is being made, analysis as George. For Jerry, the costs of the biggest question the individual should marriage are plentiful, such as not being able ask himself is which choice will give him to do what he wants because of his wife. the greatest benefit. The choice that provides Conversely, the benefits would be caring for the least amount of benefit should become someone, considering himself a “man,” and the opportunity cost. For example, you are all the great additions that result from trying to decide if you should watch the marriage. However, Jerry ultimately decides football game on the television or cut the to remain single, which is irrational because grass in your yard. If you decide that cutting the benefits outweigh the costs. For George, the grass is more important, the opportunity the costs and benefits of marriage are the cost would be watching the football game. 28 https://fisherpub.sjfc.edu/ur/vol14/iss1/6 2 Sufilka: Seinfeld: A Show about Economics and Irrationality Seinfeld relates to this principle because out. Jerry’s primary concern is the movie, throughout the show the characters are and he suggests they just go to the theater always making decisions which would result and eat food there. Jerry was also supposed in opportunity costs. However, the to go visit his sick uncle instead of seeing characters tend to make irrational decisions the movie. All of these examples have and the rational decision actually becomes opportunity costs; however, they make the opportunity cost which conflicts with the irrational decisions and the opportunity costs neoclassical economics system. would actually have been better choices. For Opportunity cost, the other economic instance, a neoclassical economist would principle heavily presented throughout have made different choices.
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