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The Simon-Ehrlich Bet: Teaching Relative Vs. Absolute Scarcity

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  • John E. Wagner
  • David H. Newman

Abstract

Absolute resource scarcity is all too real for many students, especially those from noneconomic disciplines. They have a Malthusian economic worldview. We describe a pedagogical model using “The Bet†between Paul Ehrlich and Julian Simon as its focus. The model includes a “Bet†– the students taking the Ehrlich position; a directed discussion providing students with an approach to determine who wins the Bet; and a written assignment, oral presentations, and reflection. The learning outcomes are: 1) students examine their Malthusian beliefs through developing hypotheses, analyzing and testing them, and writing and presenting their conclusions orally; 2) that market's incorporate changes in substitutes, technology, recycling, and discovery; 3) that market prices rise and fall in the short term but it is the long term that illustrates how markets respond to changes in information; and 4) students reflect critically on their initial absolute scarcity assertion.

Suggested Citation

  • John E. Wagner & David H. Newman, 2013. "The Simon-Ehrlich Bet: Teaching Relative Vs. Absolute Scarcity," The American Economist, Sage Publications, vol. 58(1), pages 16-26, May.
    • Handle: RePEc:sae:amerec:v:58:y:2013:i:1:p:16-26
    DOI: 10.1177/056943451305800103
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    References listed on IDEAS

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    Cited by:

    1. Michal Mizerák, 2019. "Comparison of Transitional Theories to Post-Scarcity in Science-Fiction Literature," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 5(1), pages 107-123.

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    Keywords

    Absolute Scarcity; Relative Scarcity;

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