Turner College Economist Frank Mixon and Coauthors Delve into Episodes of Seinfeld in Latest Academic Study

Informal case applications often enhance our understanding of an economic principle’s breadth of import in everyday life, as well as whether the principle may be acknowledged and used in a manner that facilitates decision-making. A new paper by Turner College economist Frank Mixon and his colleagues Shane Sanders of Syracuse University and Andrew Lucassen of the Mississippi University for Women contributes to the case study literature by focusing on several law and economics concepts, particularly concepts related to civil liability, included in the sit-com Seinfeld that are of particular interest to businesses and consumers. The primary case discussed in the study, which is set to appear in the next issue of American Business Review, is adapted from the 12th episode of the seventh season which is titled "The Caddy." This episode centers around the character known as Sue Ellen Mischke, the heiress to the O’Henry candy bar fortune. As described in the comedy series, Mischke and Elaine have a contentious history that dates back to their high school days in Maryland. One source of Elaine’s dislike of Mischke is the latter’s penchant for not wearing a bra. In this episode, Elaine becomes exasperated with Mischke’s bra-less habit and purchases a bra as a gift for Mischke, who, upon receipt, chooses to begin wearing the undergarment as a top instead, further irritating Elaine. Mischke’s new habit of wearing the bra as a top starts a trend of doing so by other professional women, which arouses the senses of much of the male population of New York City. One day, while driving George’s car in the city, Kramer and Jerry spot Mischke on the sidewalk sporting the new fashion trend. Mesmerized by her beauty and appeal, Kramer crashes George’s car. Injured by the accident, Kramer contacts his attorney Jackie Chiles, and the two of them conclude that Kramer has the legal grounds to file a civil liability suit against Mischke.

     Based on the sitcom’s presentation of the car accident, Kramer is clearly at fault and under normal circumstances would be liable for the damages to George’s car and those to any other vehicle (or property). In this Seinfeld episode, however, Kramer senses an opening for a tort claim given that, in his view, Mischke caused the accident by flouting her beauty and appeal in a distracting manner in a public setting. How might this situation be viewed from a law and economic thought perspective? As the study points out, an efficient liability assignment is one that minimizes the sum of costs across the parties involved. In this regard Mixon and his coauthors explain that, on the one hand, if the fashion trend of wearing bras as tops becomes common, and liability for accidents resulting from driver distraction falls on drivers, then the speed at which traffic flows through the streets of New York City would fall dramatically. This would generate a substantial opportunity cost as the flow of goods and services would be seriously hampered by such a reaction. If, on the other hand, the liability rests with women who wear bras as tops out in public, then the fashion trend would die and the women of New York City would revert to wearing bras as undergarments – as is their intended use – instead of tops. It is not difficult to imagine that any costs associated with this adjustment in behavior are dwarfed by those associated with the previous liability assignment wherein fault lies with drivers. 

     Mixon and his colleagues conclude this particular case by explaining that perhaps some state laws were written with an eye toward this type of situation. For example, every state has laws prohibiting people from committing indecent exposure or public lewdness. There are two indecent exposure offenses that apply in New York – public lewdness and public lewdness in the first degree. Public lewdness in New York represents a Class B misdemeanor with up to three months imprisonment and up to a $500 fine.  Public lewdness statutes such as this could be easily amended to deal with accidents resulting from instances or acts of public lewdness that cause harm to persons or property. 

Editor's Note: Mixon's co-author on this study, Shane Sanders, is the subject of a March 2024 post here at Turner Business. That post describes how the title of one of Sanders' research projects was parodied by Stephen Colbert on CBS' The Late Show.