Loveconomics

I find it that most students who are studying economics struggle with the basic understanding of its concepts because most lecturers don’t give practical or real-world examples. Recently I just had my mid-term exams on microeconomics, and I would like to share a few thoughts to combine economics and the subject that we all can’t stop talking about: love.

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I find it that most students who are studying economics struggle with the basic understanding of its concepts because most lecturers don’t give practical or real-world examples. Recently I just had my mid-term exams on microeconomics, and I would like to share a few thoughts to combine economics and the subject that we all can’t stop talking about: love. So here goes.

  • Good guys are a market failure. The demand is high but they are undersupplied (they are either gay, married, or vampires).
  • Cosmetics are also a market failure. When used to attract the opposite sex, it creates information asymmetry.
  • Marriage is a moral hazard. People are not exposed to the risk of their partner’s true behavior prior to the wedding.
  • Low risk, low gain. High risk, high gain. Same principle when it comes to investing your heart.
  • Thus, don’t put all your eggs in one basket – that’s why flings are encouraged.
  • But don’t marry your flings. The marginal costs of adding one more spouse in a polygamy will exceed your marginal private benefit.
  • And coase theorem does not work in real life – transaction costs always goes to your lawyer when you get a divorce

Feel free to add to the list.

6 thoughts on “Loveconomics”

  1. And marrying high maintenance-beautiful girl also bad investment. Since as time goes by, their value is decreasing while the cost of maintenance increased significantly

  2. Actually, I was always interested in everything concerning economical matters and this very fact determined my choice of profession. Now I work as a financial consultant and I’m absolutely satisfied with my job. Besides, I constantly work with people who need my advice and, therefore, I don’t lack communication. Some of my friends consider my job boring and annoying, but I don’t think so. Moreover, I’m occupied in one large and developed American company dealing with online loans and I really like my job, even though, less people share my opinion.

  3. It depends on where you put the decision of love and economics…On your own control or on another belief in the Other. That’s the core point making the differences in all of your vision about economics and love.

  4. Interesting opinion. As for me, I’ve never connected love and economy, so it was really new point of view for me. Economy takes the great poart of my life. Because my work is connected with it. I work as an financist in the company, dealing with debt consolidation loans. And I’ve met a lot of people, who really need some economic studying. Agree with previous comment, where was said that this theme is worth a book-writing. As for me, I will definetely look for more infornation about it. Thank’s a lot.

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