3. Yes, this is a line from a movie, but it makes the point.
4. If you remember the movie Ghostbusters (1984), the idea of never crossing the streams emanating from their ghost-busting proton packs is a regular shtick. Why not? According to Egon, to understand what would happen if you crossed the streams “Try to imagine all life as you know it stopping instantaneously and every molecule in your body exploding at the speed of light.” That isn’t going to happen if you cross utility curves, at least we don’t think so.
5. The constraint could also be their willingness to dominate.
References
Aaron, J. and Kubert, A. (2012). Avengers vs. X-Men, #9. Marvel Comics.
Blundell, R., Griffith, R., and van Reenen, J. (1999). Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms. Review of Economic Studies, 66(3), pp. 529–54.
Brenzel, J. (2008). Why Are Superheroes Good? Comics and the Ring of Gyges. In: T. Morris and M. Morris (Eds.), Superheroes and Philosophy: Truth, Justice, and the Socratic Way. 1st ed. Chicago: Open Court, pp. 147–60.
Dini, P. and Ross, A. (1998). Peace on Earth. New York: DC Comics.
Etro, F. (2004). Innovation by Leaders. The Economic Journal, 114(495), pp. 281–303.
Ghostbusters. (1984). [Film]. New York: Ivan Reitman.
Hazlitt, H. (1979). Economics in One Lesson. New York: Three Rivers Press (Originally published in 1946).
Knauf, D., Knauf, C., and Zircher, P. (2007). Iron Man, #14. Marvel Comics.
Layman, C. (2008). Why be a superhero? Why be moral? In: T. Morris and M. Morris (Eds.), Superheroes and Philosophy: Truth, Justice, and the Socratic Way. 1st ed. Chicago, IL: Open Court, pp. 194–206.
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Loeb, J. and Sale, T. (1999). Superman: For All Seasons. DC Comics.
Mackie, H. and Byrne, J. (1999). The Amazing Spider-Man, #12. Marvel Comics.
Millar, M. and McNiven, S. (2007). Civil War. Marvel Comics.
Moulton, C. and Peter, H. (1942). Wonder Woman, #1. DC Comics.
Percy, B. and Ferreyra, J. (2017). Green Arrow, #28. DC Comics.
Schumpeter, J. (1942). Capitalism, Socialism and Democracy. New York: Harper Row.
Shooter, J. and Hall, B. (1981). The Avengers, #213. Marvel Comics.
Smith, A. (1994). An Inquiry into the Nature and Causes of the Wealth of Nations. New York: Random House (Originally published in 1776).
Spider-Man 2. (2002). [Film]. New York: Sam Raimi.
Waid, M. (2008). The real truth about Superman: And the rest of us too. In: T. Morris and M. Morris (Eds.), Superheroes and Philosophy: Truth, Justice, and the Socratic Way. 1st ed. Chicago, IL: Open Court, pp. 3–10.
Glossary
Absolute advantage:the ability of one producer to make a greater quantity of output than another producer given the same inputs.
Assumptions:limitations placed on models in order to make the model more useful.
Asymmetric information:a disparity of information between parties engaged in an exchange.
Black market:a type of market where either illegal goods and services are sold, goods and services are sold at illegal prices, or sales are designed to avoid government notice.
Capital:the input that represents man-made inputs such as tools and machinery.
Capitalism system:an economic system that relies upon markets to answer questions about what to produce, how to produce, and for whom to produce.
Catallactics:the study of how we get what we want.
Classical production function:a production function that only requires the inputs of labor and capital.
Command system:an economic system that relies upon government to answer questions about what to produce, how to produce, and for whom to produce.
Comparative advantage:the situation that occurs when one economic actor can produce output at a lower opportunity cost than another.
Competitive market:a market that is characterized by many sellers and buyers each facing a price determined outside of their control. Firms in this market structure cannot earn long-term profit due to easy entry into the market by other firms.
Consumer sovereignty:the idea that producers must provide consumers what they want, otherwise consumers will shop elsewhere and the producer will fail.
Consumption bundle:the combination of goods a consumer can acquire.
Costs:what is given up when a choice must be made; the dollar amount paid by a firm to produce an output.
Dead weight loss:the reduction in well-being that occurs in a market that does not produce the amount of goods or services that are generated in a competitive market.
Demand:the combinations of prices and quantities buyers are willing and able to buy at different prices.
Direct incentives:an incentive where the reward or penalty for engaging in a particular action is obvious.
Dominant strategy:a strategy that yields the highest payoff for a player regardless of what the other player or players do.
Economic growth:the increase in the productive capacities of an economic agent. This is usually considered in terms of the output of a nation as measured by an increase in gross domestic product.
Economic systems:the way economies are set up to answer what to produce, how to produce, and for whom to produce.
Elastic demand:when a change in price results in a percentage change in the quantity demanded that is greater than the percentage change in price.
Entrepreneurship:the risk-taking, organizing talent that coordinates inputs into a final product.
Free market economy:an economy characterized by minimal government involvement, in which prices are set by the interaction of willing buyers and sellers.
Free-rider problem:when a consumer receives a benefit without having to pay for it. Because of the nature of the good or service, it is difficult to force the free-rider to pay.
Game theory matrix:a grid that provides the potential payouts for the players in all possible strategy combinations.
Game theory:a mathematical application to economic decision-making where strategic behaviors affect the outcome for those involved in the game.
Human capital:the skill, education, experience, or other non-tangible attributes a person brings to a task.
Incentives:forces that motivate people to act in a particular way.
Indirect incentives:the unintended result of an incentive.
Inelastic demand:when a change in price results in a percentage change in the quantity demanded that is less than the percentage change in price.
Infinite monkey theorem:the idea that given enough monkeys, enough keyboards, and an unlimited amount of time, monkeys could randomly reconstruct great works of literature.
Institutions:the social, political, and economic rules that govern society.
Interdependent:when the outcome of a game or other situation depends on not only your choices, but the choices of other actors.
Internalizing the externality:when an economic actor considers the costs they impose on others (or the benefits they generate to others) in their decision-making.
Invisible hand:a theory that suggests buyers and sellers are brought together and prices set, not by a conscious guiding mechanism, but by forces that work for the best interest of both parties.
Labor:the input that represents the human component of production.
Land:the input that represents natural resources.
Law of demand:the rule that says if price goes up or down, the quantity demanded will move in the opposite direction. This forms an inverse relationship between the two variables.
Lemons problem:a circumstance where, due to asymmetric information, the quality of a good or service brought to market tends to decrease.
Macroeconomics:the division of economics which focuses on the overall workings of an economy.
Market structure:the way the firms in a market compare with each other.
Microeconomics:the
division of economics which focuses on smaller decision-makers such as individuals or firms.
Models:the tools an economist uses to form predictions about economic outcomes or to illustrate the workings of economic actors.
Monopolist:someone who runs a monopoly. They are the only seller of a good in a market.
Moral hazard:a phenomenon that occurs when people change their behavior based on the amount of risk they are exposed to. When risk is removed, they act in very different ways than if they had to bear the full burden of the risk.
Multiple stage game:a game where players have the chance to react to the strategies adopted by the other players in a game.
Natural monopoly:a firm who gains a monopoly because of scale. The larger they are, the lower their average cost of production.
Negative externality:when a market activity causes harm to a third party.
Negative incentives:a penalty or punishment designed to make a choice unattractive.
No such thing as a free lunch:a saying that means even if you do not pay for something, it is not free because making any decision, even to go out to lunch when someone else buys, involves opportunity costs.
Non-excludability:when it is impossible to keep someone from using a good or service even if they do not pay for it.
Non-rival:when the enjoyment of a good or service is not impeded by others using the same good or service.
One-stage game:a game where players make their moves only once.
Opportunity cost:the next best option that must be given up when a choice is made.
Peltzman effect:the way people tend to behave in a riskier fashion when safety regulations are put in place.
Positive externality:when a market activity generates benefits for a third party.
Positive incentives:a payout or reward designed to make a choice attractive.
Price:the monetized amount paid for a final product by the buyer and received by the seller.
Price mechanism:the interaction of supply and demand that yields a market price. This price is used to allocate goods and services.
Prisoner’s dilemma:a game where the players’ strategies result in a suboptimal result for both players.
Production function:a mathematical relationship that indicates how inputs are combined to produce outputs.
Production possibilities curve:a curve that illustrates various output combinations an economic entity can produce.
Productivity:how effective an input is at producing output.
Public goods:goods that are both non-excludable and non-rival in consumption.
Randomization:a strategy whereby the player adopting it tries to move in an unpredictable manner.
Rational ignorance:when decision-makers do not collect all of the information they need to make a choice due to the high cost of becoming informed.
Reasonable care:a legal expectation that says people are negligent if they do not take the precautions that a reasonable person would take in a given situation.
Scarcity:the condition that exists when there is not enough of a good for all people to have as much as they would like.
Sequential game:a game where players take turns reacting to the strategies of the other players.
Simultaneous game:a game where all players apply their strategies at the same time.
Specialization:breaking down a task into small parts so that a particular input, usually labor, can perform that task proficiently. Usually linked to the division of labor.
Strategies:the course of action a player takes in a game.
Sunk cost:a cost that once paid cannot be recovered.
Sunk cost fallacy:the belief that sunk costs can be recovered. This leads to making inefficient decisions.
Supply:the combinations of prices and quantities sellers are willing and able to produce at different prices.
Third-party problem:a circumstance where an unrelated party either bears costs or receives benefits from the actions of others. As a result, they are burdened by such actions or receive benefits for which they do not pay.
Tournament theory:a way of explaining the large differences in wages in a winner-take-all situation, such as CEO pay or winning a contest.
Transaction cost:the costs involved in carrying out a transaction. These are above the dollar price paid for a good and include things such as the cost of negotiation or transportation.
Transitivity:a mathematical property that says that if a particular relationship holds between options A and B, and between options B and C, it necessarily must hold between options A and C.
Unintended consequences:when the results of a choice or policy are not what was expected or desired.
Util:the measure of a single unit of utility.
Utility:how much happiness or satisfaction a person gains from an activity.
Utility curves:lines that illustrate various consumption bundles that yield the same level of utility.
Winner-take-all game:a game where the winner captures the entire prize.
Index
Acton, John Dalberg-, Lord Acton 147
Adkinson, C. 151
advertising 67–8
Akerlof, Geroge 124
aliens 99
Allen, Barry 15, 17, 19, 22, 35–6, 39, 84, 95, 152 (see also Flash)
“American Way” 63, 149, 151, 161, 163
Amish 90, 95
anti-heroes 63, 170 backstories 99–100, 107
Anti-Monitor 91, 95
antitrust laws 169
Ant-Man 49, 170–80
Aquababy 123
Aquaman 20, 49, 60, 91, 95, 108, 152, 169
Arrow, Kenneth 181
Astrocity 138, 144
asymmetry of information 124–5, 127
Atom 136
Authority 152
auto racing 105, 129
Avengers 49, 50, 64, 74, 76
Banner, Bruce 83, 128
Bar-Gill, O. 102
Batgirl 38, 131, 140–2
Batman 49, 70, 102, 109, 110, 120, 131, 133, 139 and Robin 25, 39, 43, 44–6, 47–8, 50–1, 52–3, 54–6, 59, 60, 109
and Superman 39, 64, 66, 161, 162
backstory 10–11, 13
first appearance 168
name 25
secret identity 27, 39
technological gadgets 132
Batson, Billy 83, 94, 171 (see also Shazam)
Batwoman 94, 131
Beatles 44
Becker, Gary 100
Bentham, Jeremy 15, 22
Beyoncé 43
Birds of Prey 131
Black Bolt 171
Black Canary 131
Black Manta 86, 95, 108, 123
Black Panther 82, 132, 178
Blake, Donald 84 (see also Thor)
Blundell, R. 182
Brainiac 14
Brenzel, J. 174
Brock, Eddie 111 (see also Venom)
Brown, Stephanie 45 (see also Robin)
Cage, Luke 16, 82, 85, 133, 152 (see also Power Man)
Candy, Etta 92, 96
capital 137–8
capitalism 158, 159
Captain America 8, 11, 12, 36, 38, 50, 64, 65, 75, 77, 86–7, 132, 169
Captain Marvel 169
Carlyle, Thomas 6
Carr, Snapper 113
catallactics 9
Catwoman 63, 99, 100
Cher 43
Chiappori, P. et al. 77
China 136
cigarettes 12–13, 22
Civil War 14, 34, 64, 66, 74–6, 175
Coase, Ronald 96, 117, 128, 155
Comedian 147
Comic-Con 9–10
comics dominant producers 4
heroes see superheroes
story lines 2, 4
command systems 158, 159, 162
communism 136, 161
comparative advantage 46–8, 50, 51, 53, 54, 56
“conflict catalysts” 65
consumer sovereignty 134
contracts 154
> corruption 156–7
costs 27–8, 29–30, 32–3, 34
costumes 25–6, 37
court system 154
Crackerjack 27, 40
criminal activity 97 irrational behaviour 98
motivation 98–9, 100–3, 105, 107–9
villains’ backstories 99–100
Curry, Arthur 20 (see also Aquaman)
Cyborg 50, 82
Cyclops 66
Damage Control 121–3
Daredevil 91, 123, 125–6, 169
Dark Phoenix 28, 40, 86, 149
Darkseid 49, 60
DC 3, 4, 64
Deadpool 13, 18, 26, 38, 63, 66, 84–5, 152
defense spending 89–92
demand 87
Demblowski, B. 129
De Witt, Alexandra 123
dictators 147, 162, 163
division of labor 49
Doctor Octopus 99, 108, 111
dominant strategy 72–3
Doomsday 118
doppelgangers 65, 66, 108
Drake, Tim 45, 109 (see also Robin)
Dr Doom 122, 144
Dr Fate 169, 171
Dr Manhattan 28, 40, 147, 152, 171
Dr Strange 11, 12
economics “dismal science” 2, 6
public perception of economists 1, 3, 81
Ehrlich, I. 101
“elaborate ruse” 65, 66
elastic demand 87
Elecktra 63
Elite 151
Ellis, Warren 152
emotional ties 34–5
Enchantress 58, 60
entrepreneurship 135–6
environmental rights 117, 128
Etro, F. 182
exchange 9
externalities 116–18, 119 internalization 121–3
fairness 158
fame 14
Fantastic Four 26–7, 34
Firestar 82, 134
“firm-specific capital” 36
Flash 8, 9, 10, 15–16, 19, 22, 35–6, 39, 41, 49, 95, 152, 169
Flash Gordon 168
football injuries 105
Ford, Henry 134
free-riders 88, 92–3, 96
“fridging” 128
Friedman, David 36
Frost, Emma 82, 133
Fukuyama, Francis 153
Galactus 113, 128
game theory 64, 67–70, 77 dominant strategy 72–3
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