Behavioral & Game Theory · Jesse · Walter

Inertia

Walter stops by to see Jesse. Reminiscing about the start of their partnership, they cannot help but wonder about sticking with the old recreational vehicle (RV) even when there was enough to replace it. While the RV served them well in their first attempts to cook methamphetamine, the two did not upgrade until they started working for Gus Fring. The ownership/endowment effect underlines the scenario in which some people are unwilling to exchange something that they possess for the same amount of money that they would pay for it (if not owning it). Walter and Jesse loved the RV even though it had, and brought them, many problems. From a rationality standpoint, they may have been too concerned with the sunk costs that they have incurred.

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Behavioral & Game Theory

Who’s Responsible

Jesse beats Saul and forces him to confess at gunpoint about helping Walter to poison the son of his (Jesse‚Äôs) former girlfriend. In the moment, Saul needs to make a decision. He can lie to Jesse and play dumb, but he risks getting shot because of Jesse’s anger. On the other hand, he could tell Jesse the truth, confess to aiding Walter, and Jesse could still shoot him because he’s so angry. Either way, Saul must weigh the probability of being shot from telling the truth or from lying.

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