Micro-economics help

[NickC13573]

Hi there,

 

 

I was wondering if I could get help with my Micro-economics homework.

 

 

 

 

1. Why do physicians tend to overprescribe antibiotics?

 

2. Why do so many supermarkets, even those in small towns, stay open twenty four hours a day? ( the answer I am looking for is not that the stores find it a good time to restock shevles or that they still make enough to cover expenses.)

 

3. Why do hocky plaers vot unanimously for rules that require helmets, even though, when left to teheir own devices, they almost invariably skate without them? The best way of answering this is to tell a story where everyone wears a helment but then people are free to wear or not wear a helment and this lead to an equilibrium where no one is wearing a helment.

 

4. Why have many high schools abandoned the practice of naming a valedictorian? ( Don't focus on the issue of high schools not wanting to reward people differently or being concerned about what such a practive does to the feeling of students who did not do well during highschool.)

 

5. Why do most states enforce mandatory kindergarten start dates that require all children to start by the age of six?

 

6. Why does the Rookie of the Year in MLB often have a less successful season?

[thatoneguy]

Well, I'll give my opinion on stuff, but non of this is gonna be fact...I don't really know if you need to know that or not.

 

1: So they can make more money. People take more pills, the money circles to drug companies and physicians.

 

2: I'd imagine so they can brag about that fact, and because it gives certain people jobs, and sometimes people need stuff at 3 AM that doesn't rhyme with bope rain.

 

3: I'd say because when left to their own devices, they aren't trying to pummel each other to death, but in games they are.

 

4: Because it really doesn't matter. Not when it's pretty easy to get into college, and College is rapidly becoming the new high school in importance.

 

5: My guess is that it just helps keep paperwork in order.

 

6: Nerves I'd imagine.

[MrOnu]

I'm pretty rusty in microeconomics since I graduated 5 years ago and I'm not working in this field (yeah, I know...), but I'll chip in a few things to try to help.

 

1 and 6 looks like two cases of asymetrical information to me which leads to market malfunctions. #1 : the doctor knows a crap load more about health, illnesses and drugs than the average person. When you see one, you only know basic stuff about your health and you're putting your condition in the physician hands because of his knowledge. You need to be taken care of and you want to be taken care. Doc needs to do something to reassure you and prescribing pills is a good way to do so since you have no way of telling if it's right or not. On a sidenote, I don't know if it's the case everywhere, but here, physicians get so much freebies from drug companies, it might influence their judgment. #6 : Year one, teams only have basic infos about the rookie coming up from the minor scouting system. They have to take guesses and it might bomb. Year two is different story. Now everyone knows about the inside curveball you can't hit and they're going to throw it a lot at you. The information is evenly distrubed in the year two between the former rookie and other teams which cause the drop in performance.

 

#2 : Not sure about it, I'll have to think about it.

 

#3 : It's case of prisonner dilemma (well, that's how it's called in french anyways) which is an advanced microeconomic topic. Basicaly, everyone would be better off wearing an helmet, but the benefits are doubtful if only part of the players are wearing one. Every player understands the collective gain, but on an individual level, everyone is saying "why should I wear one if no one else if ? ". This leads to no one wearing a damn helmet.

 

#4 : To be honest, I don't even know what " naming a valedictorian" implies, so I'll pass.

[CQI13]

1. Why do physicians tend to overprescribe antibiotics?

As mentioned, they receive a lot of freebies, so they tend to prescribe that over a comparable drug.

 

2. Why do so many supermarkets, even those in small towns, stay open twenty four hours a day? ( the answer I am looking for is not that the stores find it a good time to restock shevles or that they still make enough to cover expenses.)

Convenience would be a reason.

 

3. Why do hocky plaers vot unanimously for rules that require helmets, even though, when left to teheir own devices, they almost invariably skate without them? The best way of answering this is to tell a story where everyone wears a helment but then people are free to wear or not wear a helment and this lead to an equilibrium where no one is wearing a helment.

Game theory, as explained by Mr Onu. http://en.wikipedia.org/wiki/Prisoner's_dilemma

 

4. Why have many high schools abandoned the practice of naming a valedictorian? ( Don't focus on the issue of high schools not wanting to reward people differently or being concerned about what such a practive does to the feeling of students who did not do well during highschool.)

Rankings still exist, so whoever ends up #1 is still the valedictorian, even if it is not called that.

 

5. Why do most states enforce mandatory kindergarten start dates that require all children to start by the age of six?

I would think that it would make things easier to keep track of, and makes it easier to set a standard by which educational progression is measured.

 

6. Why does the Rookie of the Year in MLB often have a less successful season?

I assume you mean the second year. The other teams have more information on your tendencies. It's also seen within the same year, typically the second time you face a team. Further, most teams don't like their pitchers to face the batting order more than 2 times in a game, at least not the middle of the order.

[NickC13573]

Would number 4 be some sort of arms race, or have something to do with an arms race?

[CQI13]

Well, at least in my opinion, much like everything else in life, there's a few winners and a bunch of losers. There will always be high achievers and underachievers (with a bunch of in betweens). And even within the "Top 10" I'd say, there's a clear cut division between say the top 3 and the rest. I guess it could be seen as an arms race, but typically it's very limited to the number of people...and nothing wrong with trying to be a high achiever.

[ACCBiggz]

I can't believe everyone is doing your homework for you... >_>

[CQI13]

Given the different opinions provided thus far, I'd classify it as brainstorming.

[NickC13573]

ya, I don't know if we could call this DOING my homework, as we do not have a clear cut answer.

[PeterHilton]

ya, I don't know if we could call this DOING my homework, as we do not have a clear cut answer.

 

Considering YOU haven't chimed in much, yeah they're doing the homework for you.

 

Interesting conversation though. I'm intrigued what the answer will be to the 24 hour grocery store.

[CQI13]

Considering YOU haven't chimed in much, yeah they're doing the homework for you.

 

Interesting conversation though. I'm intrigued what the answer will be to the 24 hour grocery store.

 

Touché sir.

[ChrisWest]

I know the answer to the 24 hour grocery stores, as it is actually in my book.

 

The answer is that it reflects higher costs being incurred as a result of yet another prisoner's dilemma (I hope you're familiar with that?).

most people do the bulk of their shopping at one supermarket. Other things being equal, more people people will choose the store with the most convenient hours. If one closes at midnight while the other decides to stay open until 1 am, the latter will obviously capture all the business from midnight to 1 am. It will also capture some of the business of the other store that would have gone to that store before midnight but now has the choice of shopping after midnight. The optimum strategy is for the second store to stay open too. The extra cost of staying open may well exceed the willingness of people to pay at that time (as they can always choose to shop earlier).

 

Same goes for 1 am-2 am and so on.

 

Hope this helps.

[NickC13573]

I can't believe everyone is doing your homework for you... >_>

 

Given the different opinions provided thus far, I'd classify it as brainstorming.

 

I know the answer to the 24 hour grocery stores, as it is actually in my book.

 

The answer is that it reflects higher costs being incurred as a result of yet another prisoner's dilemma (I hope you're familiar with that?).

most people do the bulk of their shopping at one supermarket. Other things being equal, more people people will choose the store with the most convenient hours. If one closes at midnight while the other decides to stay open until 1 am, the latter will obviously capture all the business from midnight to 1 am. It will also capture some of the business of the other store that would have gone to that store before midnight but now has the choice of shopping after midnight. The optimum strategy is for the second store to stay open too. The extra cost of staying open may well exceed the willingness of people to pay at that time (as they can always choose to shop earlier).

 

Same goes for 1 am-2 am and so on.

 

Hope this helps.

 

 

 

 

Wow, that actually is EXACTLY what we discussed in class on Monday. That just connected everything for me. Thank you.