Teaching economics using clips from the AMC hit show, Breaking Bad.
Walter and Skyler are in the market for a new house. Walter is attempting to maximize his utility by proposing to Skyler a larger house instead. In other words, Walter is trying to move onto a higher indifference curve. However, their limited budget represents a constraint to Walter’s utility maximization problem.
See more: budget constraint, indifference curve, interdependent utility functions, preferences, tradeoffs, utility, utility maximization
In an attempt to get Walt Jr to like him again, Walter tries to buy him a used car. Recognizing that his dad is trying to purchase his approval, he convinces his dad to buy him a new sports car instead. This clip shows Walter’s willingness to pay for his son’s happiness.
See more: differentiation, elasticity of demand, interdependent utility functions, product characteristics, subjective preferences, utility, willingness to pay
Walter is about to leave, but Saul takes some time to advise against it. While it may seem like he’s doing what’s best for his family, Saul explains how law enforcement will come after Skyler and ruin Walter’s family. Walter is making a private decision about what to do and what he believes is best, but he may be ignoring all of the costs he imposes on other people by running. Saul suggests that if he truly cares about his family then he’ll turn himself in.
See more: externalities, interdependent utility functions, negative externalities, private benefits, private costs, social costs
Gus and Walter discuss Walter’s decision to start cooking meth. Walt has debated the costs and benefits of his decisions throughout the show’s five seasons. Gus has an incentive to make sure Walter produces for him, so he tries to emphasize the importance of the benefits Walt has received and echoes how large those benefits are relative to the costs.
See more: tradeoffs, cost benefit analysis, psychic costs, subjective costs, decision making, interdependent utility functions
Walt weighs the costs and benefits of his decision to start producing meth. The benefits are clear, the money will cover college tuition, tutors, mortgage payments, and all future expenses. The costs have been larger than Walter could imagine, but he believes all the benefits have outweighed the costs of his decisions.
See more: tradeoffs, cost benefit analysis, psychic costs, subjective costs, decision making, interdependent utility functions
Is it worth Skyler’s trouble to turn Walt in for making meth? She discusses this decision with her lawyer, but can’t seem to convince herself to go through the process. In this scene, Skyler is audibly weighing the costs and benefits of her decision. The lawyer seems to think that the benefits of turning her husband in outweigh the costs, but Skyler decides otherwise
See more: tradeoffs, cost benefit analysis, psychic costs, subjective costs, decision making, interdependent utility functions
The Economics of Breaking Bad 