Homer stops by Apu's convenience store to buy "the usual" and learns that he can sell grease. He tries to start a business around selling grease but realizes that his approach ends up losing him money.
Jerry gives Elaine cash for her birthday, thinking she can spend it on whatever she likes best. But Elaine is mortified; she wanted a thoughtful gift that signaled Jerry had put great thought into his gift. Kramer enters and does just that—gives Elaine a thoughtful gift.
While Jerry and Elaine are at a restaurant, a valet parking attendant with body odor leaves Jerry's car with a lingering smell. The external costs are large: the smell attaches itself to Jerry and Elaine, who have to resort to costly measures to cleanse themselves. Jerry attempts to recoup some of the damage by cleverly bargaining with the restaurant owner to cover the cost of cleaning the car. In the end, the cleaning is not enough, and Jerry leaves the car and keys in plain sight hoping it will be stolen, in which case the insurance company will bear the loss.
This clip demonstrates the loss of potential gain from other alternatives when one alternative is chosen.
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George is dating a pianist. He needs "hand," as she is clearly the alpha member of the pair. Kramer suggests a preemptive breakup. George analyzes—if she accepts the breakup, there's no loss, as she was going to break up with him anyway. If she rejects the breakup, he will have established himself as the alpha member. Therefore, the preemptive breakup is a dominant strategy. It works; he gets a high payoff.