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The Economics of Everyday Things

83. Game Show Winnings

10 Mar 2025

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How do TV producers decide how much money to give away? A little psychology and a lot of math. Zachary Crockett phones a friend. SOURCES:Bowen Kerins, math teacher and former contestant on Who Wants to Be A Millionaire.Arthur Smith, CEO of A. Smith & Co. Productions and author of "Reach: Hard Lessons and Learned Truths from a Lifetime in Television."Aaron Solomon, television producer. RESOURCES:"‘The Price Is Right’ Celebrates 10,000 Episodes With Extra Big Wins for Contestants That Top Off at $100,000!" by Rosemary Rossi (Variety, 2025)."Why haven’t more game show prizes been adjusted for inflation?" by Janet Nguyen (Marketplace, 2023)."Deal or No Deal? Decision Making under Risk in a Large-Payoff Game Show," by Thierry Post, Martijn J. van den Assem, Guido Baltussen, and Richard Thaler (American Economic Review, 2008)."Why Game Shows Have Economists Glued to Their TVs," by Charles Florelle (Wall Street Journal, 2006). EXTRAS:"Bowen Kerins on Who Wants to Be a Millionaire" (2000). Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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