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Google, and Uber, and Drones (Oh, My!):A Less-is-More Approach to Teaching with Superexamples

Jim HornstenNorthwestern Universityj-hornsten@northwestern.eduWe hope using anecdotes (e.g., examples from recent articles) makes our courses more accessible, interesting, and up-to-date, without making them feel superficial, disjointed, or ephemeral. In this session we consider developing a few detailed superexamples that one can employ like a Swiss army knife to teach multiple topics both within and across courses perhaps through themed lectures, homework, or exams. For instance, the market for drones naturally involves [a wide variety of microeconomic topics], so focusing on drones could be a cost-effective way to prepare simultaneously for a portfolio of courses or topics.1Google, and Uber, and Drones (Oh, My!):A Less-is-More Approach to Teaching with SuperexamplesWhy Do We Teach Using Examples?Whats the Ideal # of Examples?The Educational Input MixOne Idea for Many TopicsMapping to Mankiws Micro PrinciplesThemed Homework or ExamsSuperexamplesGoogleUberDronesOne Idea for Several CoursesWorkshop: What Other Topics Might Work?

2Why are we here?Thinking about an educational production function!How can I better attain my teaching objectives?My motivations could beImprove student results (e.g., understanding, retention, fun, TUCE scores)Improve teaching resultsHave more funCut prep time/costsInject novelty & variety into familiar materialEstablish credibilityBuild rapportChallenge self to learn a new technology

(At a national economics teaching conference)34 Ways of Communicating Most ECON IdeasIntuitionExplain it to your roommate, parent, or stranger at a party Anecdotes (Examples)The singular of data is anecdote G. StiglerFind it in The Economist, NY Times, WSJ, Wired, Cosmo, Sports IllustratedMath (Theory)Plug numbers into a formula; find a first-order conditionGraphs (Theory)Find peak of a hill-shaped profit function

GOAL: Teach students to fluently translate between these forms, as if they were translating Thank you into other languages [Gracias, Merci, Danke, Grazie, Arigato, Diakuju]4-D hard to draw; lets simplify to Theory & Examples

4Teaching With Examples: Why Do This?This is a weak list What am I missing?PROSAccessibleInterestingUp-to-dateFun to do online searches to prep for classCONSSuperficialDisjointedEphemeralCostly to do each term

There are a lot of examples out there competing for our attention, so how do we narrow them down?56How Many Examples to Employ?A Spectrum of Possibilities

Probably Too Many; Redundant or Overwhelming; No Time Left to Cover TheoryProbably Too Few; Unclear if ECON Applies to Real World; Maybe Professor Doesnt Really Know This TopicGoldilocks Level in a Laffer Curvian WayN=0N smallN largeNIts probably not a bad idea to think about this occasionally, especially when preparing a new lecture or courseN = # of Examples

6IsoQuants: QWidgets = f[Labor, Capital]

Labor,L(Humans)Capital, K(Robots)Perfect Complements: Q = min {L, K}Perfect Substitutes: Q = L + KImperfect Substitutes: Q = LK7

A benchmark model from micro theoryIsoQuants: QEducation = f[Examples, Theory]

Examples,E(anecdotes& articles)Theory, T(Graphs& Math)Perfect Complements: Q = min {E, T}Perfect Substitutes: Q = E + TImperfect Substitutes: Q = ET

E.T. The Extra-Terrestrial (1982, Universal/Amblin) 8Lets replace (L,K) with (E,T) and widgets with educational outputsASIDE: From the Students Perspective,IsoUtility: UEducation = f[Examples, Theory]

Examples,E(anecdotes& articles)Theory, T(Graphs& Math)Prefer a Heavy Dose of E: U = E0.8 T0.2Theory is Bad: U = E T Bliss Point: U = 100 (E 3)2 (T 3)2

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How do our students feel about our mix of theory and examples?SUPEREXAMPLES: A Way to Kill 2 (or more!) Topical Birds with 1 Course Prepping StoneSometimes we want to show how ECON fits together in a cohesive way. Its not just a collection of anecdotes. (Cf. behavioral )End of Unit ReviewWrap Up CourseWhy do we typically teach micro principles around the model of perfect competition and then venture off into monopoly, oligopoly, externalities, public goods, moral hazard, adverse selection, transactions costs? Nice to set up benchmark, and then do comparative statics.The View From 30,000 Feet10Table of Contents for Greg Mankiws MicroeconomicsTen PrinciplesThinking Like EconomistsGains From TradeMkt Forces of S&DElasticityGovt Policies and S&DMkt EfficiencyTaxationInternational TradeExternalitiesPublic Goods & CommonsTax SystemsProduction CostsCompetitive FirmsMonopolyMonopolistic CompetitionOligopolyFactor MarketsDiscriminationIncome InequalityConsumer ChoiceMicro Frontiers

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Challenge: Pick a topic, and try to link it wo each of these chaptersApplication: Themed ExamsIn Micro Principles Ive used smartphones, beef, summer, umbrellas, tofu and spacePROS:Easy to keep track of when students come to office hours its a lot easier to refer to the chicken soup exam than Practice Exam #1, the Fall 2014 Midterm Exam, or F14MECan be fun if students wonder what the theme will beCONS:May seem strained (desperate) Adds constraints, making it a bit tougher to write examMakes the exam a bit longer as you add words to place into context12E.g., Pharmaceutical Patent-Themed Homework

13E.g., A Space-Themed Micro Principles ExamGOAL: Cover Unit 1 Material with Common ThemeTASK: Find space-y topics to test S&D shifters, etc.

S&D shifters in the mkt for wool blankets, used by stargazers. [Weak]Cross price elasticity of demand using Pfleece and QwoolMinimum wage & occupational licensing in futuristic, competitive labor mkt for Vomit Comet pilots (weightlessness from flying in parabolic arcs)Public Good: Near-Earth Object Program to track comets & asteroidsExternalities: City Lights reduce crime, but obscure meteor shower viewingGravity as an artificially scarce good; P>MC creates DWLSubsidizing Armageddon-style space heroesSpaceX CEO Elon Musks income taxes

14Links to Microeconomic TopicsNew Years Eve demand for rides; WTP more?Uber drivers use own cars; costly to supply ridesEquilibrium price may be high; surge (peak-load) pricingVoluntary, mutually beneficial tradesPED: Do many ppl switch from traditional cabs to Uber b/c PlowTaxicab medallions & occupational licensing: govt policiesWelfare analysis: CS = WTP Ppaid, DWL from scarce cabsASIDE: An interesting topic; current freshlings enamored by sharing economy possibilities (rent/share rather than own; live at home and pay off college loans)

15UBER: Link to Sharing Economy16

Links to Microeconomic TopicsAntitrust troubles in EuropeOnline searchBig player in M&A; often averages one acquisition per weekHardware: OS: AndroidPatents: MotorolaHigh Tech Gadgets: Google Glass, driverless carCensorshipPrioritized search results

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Wholl Win?Links to Microeconomic TopicsMilitary spendingPrivacy & noise externalitiesCool, new 3-D selfiesShd FAA keep them away from airports?Shd another regulator keep them from spying on me?

19The market for drones naturally involves civil aviation regulation, airspace property rights, privacy and noise externalities, public goods (Samuelsons rule, taxes, voting, bureaucracy), delivering goods to soldiers or Amazon customers way off the beaten path, and defense contract bidding, so focusing on drones could be a cost-effective way to prepare simultaneously for a portfolio or courses or topics.

20DRONES: Link to Automation: Replacing L with K

When does it make economic sense to use/send a machine instead of a (wo)man?

20SUPEREXAMPLES: A Way to Kill 2 (or more!) Course Prepping Birds with 1 Topical Research StoneAssumptions:In your educational production function, perhaps theories and examples are perfect complementsE.g., Q = min {T, E}, so you need one good example to clarify each theoryYou have an endowment of theory inputs (i.e., you dont need to prep the theory part of your lecture)Examples get stale/dated/unfamiliar/unproductive, so you regularly need to buy new examples. Sorry, thats life.It takes X hours to develop one new exampleEach lecture requires one exampleYou teach three different coursesGoal: Spend less than 3X. Indeed, try to spend only X.Idea: Cut prep time by spreading fixed costs across courses.How? Find examples that work in multiple courses21Case: 3 Courses on Regulation, 1 Common TopicECON 101: Freshling Writing Seminar on Economics of RegulationLicensing cosmetologists, seatbelts & Peltzman Effect, recalling Buckyball magnets, texting while driving PSAs, online privacy & targeted ads, soda taxes to fight obesity, raw milk cheese bans, Too Big To Fail banks, soaring student debt, FDA & e-cigarettes, Facebooks network effects, adverse selection & ACA, low-flow water fixtures, how to slow climate changeECON 250: Business and Government (for non-majors)Apply micro principles to study the proper role of government in the economyECON 350: Monopoly, Competition & Public Policy (Jr/Sr majors)Apply micro theory to study monopolization in the context of public utilities, intellectual property, cartels, predation, horizontal mergers, and network effects

Should we discourage patent assertion entities (trolls)?22Google, and Uber, and Drones (Oh, My!)

The Wizard of Oz (1939, MGM)What are some other current topics (markets, firms, products) that would allow you/me to exploit these efficiencies in course preparation?23