2 Search Results

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  Seinfeld: The Broken Car

  00:40

  Economics

  moral hazard

  asymmetric information

  MS HS C

  Jerry's car is broken and he takes it to a new mechanic. The new mechanic gives an estimate that Jerry believes is too high. George says, "Of course they're trying to screw you—that's what they do. It's because you don't know anything about what's going on under there!" George also says that Putty, Jerry's regular mechanic, wouldn't try to screw him. Reputation for honesty can overcome moral hazard problems.

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  Seinfeld: The Pitch

  01:20

  Economics

  asymmetric information

  MS HS C

  Newman trades Kramer a helmet for a radar detector. Jerry thinks Kramer is getting ripped off; later Kramer tells Jerry that the radar detector didn't work!