05. Labor Economics


Classical Labor

003: Marginal Product is not Demand This video proves that marginal product or utility is not demand, and that marginal cost is not supply.
001: The Inconsistent Theory of the Firm This video works out the inconsistency problem of the neoclassical production theory.
294: Law of Supply This video shows how utility kills the law of supply.
140: Stupid Labor Theory This video shows that Ricardo’s labor theory is both stupid and fatal.
295: Optimal Taxation II This video rejects Mirrlees’ optimal taxation theory.
383: U Production IV

This video reproduces a u-shaped curve.

384: U Production V This video further disproves the u-production model.


361: In House Training I This video disproves raising marginal product for more profit.
362: In House Training II This video disproves lowering wage rate for more profit.
363: In House Training III This video shows how Becker tried to add three marginal conditions together.
364: In House Training IV This video shows that Becker finds no money to finance training.
365: In House Training V This video disproves Becker’s total differentiation.
366: In House Training VI This video proves that more efficient labor can obtain higher wage rate.
367: In House Training VII This video proves that training is also profitable.


368: Signaling I This video reproduces Spence’s Signaling theory.
369: Signaling II This video shows how Spence destroyed his own signalling theory.
370: Signaling III This video rescues Spence’s signaling theory.
371: Signaling IV This video disproves the cost part of Spence’s signalling theory.


344: Tournament I This video shows the contradiction of Lazear and Rosen’s tournament theory.
345: Tournament II This video shows how tournament can discourage work.
346: Profit Share I This video describes the profit sharing dilemma.
347: Profit Share II This video works out the optimal profit share for labor.
323: Shavell I This video disproves the maximisation on expected utility.
324: Shavell II This video further disproves the maximisation on expected utility.
325: Shavell III This video discloses a blatant lie by Shavell.
326: Shavell IV This video proves that it is hard to lure worker to put more effort.

Contract & Bargaining

328: GH II This video tells the difference between the theory of the firm and bargaining.
327: GH I This video proves that Contract Theory is the same as the Principal-Agency Dilemma.
329: GH III This video shows an example of the abuse of inverse function.
330: GH IV This video shows how Grossman and Hart inflict higher cost to the principal.
067: Agency Dilemma IV This video proves that Laffont and Tirole gave the whole profit to the manager!
016: Nash Bargaining I This video proves that Nash’s utility method to bargaining leads to unfairness.
017: Nash Bargaining II This video proves that Nash’s exchange does not result in his Pareto Optimum.
057: Shapley II This video proves that Shapley’s method is detrimental to workers in wage negotiation.

Economic Crime

064: Agency Dilemma I This video proves that the manager would embezzle the whole pie, had he had his own indifference curve.
065: Agency Dilemma II This video proves that the manager might embezzle more than the whole pie, if embezzlement price could be made lower.
066: Agency Dilemma III This video proves that policing or outsourcing may ruin the bargaining problem at all.
300: Ineffective Punishment This video explains why Becker’s crime theory is ineffective.


373: Matching This video shows how Mortensen and Pissarides have completed a tautological cycle.
375: Search Theory I This video disproves Diamond’s search theory.
376: Search Theory II This video further disproves Diamond’s search theory.
377: Search Theory III This video still further disproves Diamond’s search theory.
374: u-v Curve This video derives the uv curve, also known as the Beveridge curve.