Bargaining with House

CoreEcon - May 9, 2008 - 4:38pm

A great bit of dialogue from a recent episode of House.

Dr. Cuddy: All I ask is that you tone it down for a few days.
Dr. House: I want that TV.
Dr. Cuddy: We’re not bargaining.
Dr. House: You want something. Either you’re bargaining or you’re begging.
Dr. Cuddy: Me keeping my job is good for you.
Dr. House: Yes, but it’s better for you. I just want us to be equally happy.

This is an excellent illustration of bargaining with non-transferable utility (that is, when money can’t change hands). Just because two people want the same thing doesn’t mean there isn’t an issue over who gets what.

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