Alex has been asked to babysit her cousin Lily. Lily wants to play with dolls during this time, but Alex tries to convince her instead to read a book that involves empowering women. Lily insists on playing with dolls, and the first doll she shows Alex is a wife who does not have a career, but shops.
See more: gender roles, nature vs. nurture, pre-market discrimination, societal discrimination, specialization
Lily lost her first tooth and got $100 from the Tooth Fairy. Cam and Mitch are trying to convince her that the Tooth Fairy made a mistake and she should give the money back, but Lily wants to keep the money until Haley tells her this would almost certainly put her on Santa’s naughty list. Now Lily has to decide what she values more: $100 or Christmas presents.
See more: opportunity cost, rationality, tradeoffs
Lily’s lost a tooth and it’s up to Cam to play the role of the tooth fairy. Perhaps it was late at night, or maybe too much wine, but the Tooth Fairy leaves Lily $100 for her first tooth. While both are in shock, Mitch points out that the going rate must be $5 tops and that the Tooth Fairy must have made a mistake. Delta Dental tracks tooth prices through the Tooth Fairy Poll, and the market rate in the United States is about $3.70.
See More: demand, equilibrium, expectations, market price, prices, supply
When adopting Lilly, Mitchell only gave her his own last name and not both his and Cameron’s because he was scared Cameron would leave. As an apology he writes a story about two monkeys adopting a panda. He and Cameron think they have found a niche market with stories for gay parents, but they realize the market is already pretty saturated after a trip to the bookstore.
See more: advertising, demand, entrepreneurism, market power, monopolistic competition, product differentiation, tastes and preferences
Lily has the tough teacher but Cam and Mitch just learned of an opening in the “nice” teacher’s class. In this scene, the two approach Ms. Plank about transferring their daughter into Ms. Sparrow’s classroom. Education is one market where consumers have little choice. Some critics argue that this creates inefficiencies in the market while others argue that education consumers may not have enough information to make optimal decisions. Critics insist that giving consumers more choice would not necessarily lead to an improvement in efficiency. This sort of problem is discussed at many levels in education – from school choice to book choice. In this scene, it was clear that the Cam and Mitch were ill-informed of even their daughter’s preferences, but assume that Lily would have done better in the other teacher’s class despite not actually knowing Ms. Plank’s ability.
See more: education, human capital, human capital investments, information economics, market failure, preferences, school choice, signaling, skill building, textbook choice, tradeoffs
Cameron gets Lilly a job as a child actor, but Mitchell is not excited about it and says no. Cameron doesn’t understand why Mitchell thinks he should have the final say in household decisions. Theoretically, decision making in the household production model tends to lean toward the spouse with greater access to resources (which Cam notes in the clip), but it doesn’t mean that partner gets to make all of the decisions. The unitary model assumes one spouse makes all the decisions as a social planner, but the bargaining model means that decisions are shared between partners.
See more: access to resources, bargaining power, household labor supply, household production, interdependent utility functions
Cam and Mitch are trying to get Lily into the best preschool they can, and preschool admissions are normally very competitive, but they think that being gay and having a minority child will give them a leg up in the admissions process. The market for daycare appears to be a monopolistically competitive environment in which firms differentiate their offerings to appeal to different parents.
See more: allocation, competition, demand, inefficiency, monopolistic competition, prices, product differentiation, rationing, signaling
Mitchel bumps his daughter’s head on the doorframe, and he and Cam worry that something may be wrong with their daughter. They consider causal outcomes, like if he had hit her head she would cry (which she does), but then they worry about long term impacts of hitting her head. The two decide to call Claire for guidance.
Claire reassures them that everything is fine because her youngest son (Luke) was hit on the head a lot and he’s fine. Unfortunately, this correlation ends up worrying Mitchell more. While it may not necessarily be causal, the two worry that is and decide to take Lily to the hospital.
See more: causation, correlation, health care
The Dolphins are on a winning streak and Cam keeps doing his pre-game superstitious activities in the belief that this is why his team keeps winning. Realizing he hasn’t been the most supportive spouse, Mitch decides to go to the game, but that’s against the weekly tradition and all of a sudden the team’s fortunes turn. It may be hard to convince Cam, but correlation doesn’t imply causation.
See more: causation, correlation, gamblers fallacy, sports
Cam and Mitch have been married 3 months, but it seems like their honeymoon will never end. Cam continues to give Mitchell flowers even though he clearly doesn’t enjoy them as much as he used to. He may have loved the first bouquet, but eventually he may start to hate them.
See more: diminishing marginal returns, gift giving, inefficiency, preferences, rationality, utility