Externality practice, then the fishing experiment
Finish the externality toolkit with Classwork 2 and Lecture 3, then use the opening slides of Lecture 4 to run the Classwork 3 fishing experiment.
Focus
- External marginal cost and social marginal cost
- Efficient harvest and corrective policy
- Fishing choices under five institutional settings
Prepare
- Review the Classwork 1 fish market
- Read TL Chapter 2
- Bring a calculator and one internet-connected device
Practice
- Find efficient fish harvest and a corrective tax
- Distinguish externality cost from stock-scarcity cost
- Make ten private catch choices across five fishing settings
Guiding question
How does adding omitted harm change efficient fish harvest—and how do different fishing rules change individual choices and the stock left behind?
Learning targets
- Construct social marginal cost from private and external marginal cost.
- Use graphical areas to measure external damage and deadweight loss.
- Find the efficient harvest and a corrective tax.
- Record how catches, dock prices, and fish left differ across the five experimental settings.
Lecture slides
Click inside a slide preview, then use:
- ←/→ or ↑/↓ to move through the slides;
- M to open the menu;
- F to enter fullscreen;
- E to enter or exit PDF export mode;
- Ctrl + Shift + F to search the slides;
- T to switch between light and dark mode; and
- Esc to exit the menu or fullscreen.
This week’s materials
TL refers to Tietenberg and Lewis, Natural Resource Economics: The Essentials, 2nd edition. Chapter numbers on this page follow that edition, not the larger Environmental and Natural Resource Economics textbook.
Reading: TL Chapter 2 — The Economic Approach: Property Rights, Externalities, and Environmental Problems.
Coming next
Week 4 starts by debriefing Classwork 3, then uses Lecture 4 to study property rights, public goods, open access, and institutional responses.