I have thought about writing this many times but then people are not what i relish writing about so i always let go of it. However this recent new experience makes me think twice about doing that and here is a post.
Well its about how economics is applied to daily life in our interaction with people.
When two strangers meet and a common platform is discovered to keep the conversation going ..initially there is a lot that they have to discover about each other .. these are new things and facts or projections not known earlier by one about the other. As such the marginal value returned by every added moment of interaction is pretty high and as such there is a desire on part of both to spend more and more time with each other. As such it is evident that a lot of time is spent together and some exceptions are made in schedule. (the given graph is from http://www.davidfriedman.com)
As more time is spent with each other, more facts and aspects are discovered about each other and the new things to learn keep on reducing unless new experiences are created. What this means in practical terms is that the focus needs to shift from learning or talking the past to the living the present and building the future. If that does not happen then the incremental learning from new facts decreases as they are linked to now known facts and also the probability of coming up with a fact not now already known reduces. In economical terms the marginal value added by every moment of interaction goes down. Asuch the incentive to spend more and more time with each other goes down and new options are sought priorities are reset , the exceptions disappear, and what some people call it as "distances creep in".
So next time this happens in your or our life don't worry .. don't fret about it don't feel cheated it is a perfectly rational approach in the larger frame of bounded rationality.
In simple humanitarian terms the economics of people is about a utility function of deriving added value.. in other terms its plain utilitarianism.
Well its about how economics is applied to daily life in our interaction with people.
When two strangers meet and a common platform is discovered to keep the conversation going ..initially there is a lot that they have to discover about each other .. these are new things and facts or projections not known earlier by one about the other. As such the marginal value returned by every added moment of interaction is pretty high and as such there is a desire on part of both to spend more and more time with each other. As such it is evident that a lot of time is spent together and some exceptions are made in schedule. (the given graph is from http://www.davidfriedman.com)
As more time is spent with each other, more facts and aspects are discovered about each other and the new things to learn keep on reducing unless new experiences are created. What this means in practical terms is that the focus needs to shift from learning or talking the past to the living the present and building the future. If that does not happen then the incremental learning from new facts decreases as they are linked to now known facts and also the probability of coming up with a fact not now already known reduces. In economical terms the marginal value added by every moment of interaction goes down. Asuch the incentive to spend more and more time with each other goes down and new options are sought priorities are reset , the exceptions disappear, and what some people call it as "distances creep in".
So next time this happens in your or our life don't worry .. don't fret about it don't feel cheated it is a perfectly rational approach in the larger frame of bounded rationality.
In simple humanitarian terms the economics of people is about a utility function of deriving added value.. in other terms its plain utilitarianism.
1 comment:
oh whatta mathematical post!! i need to study it to understand..lols.. keep analyzing.. keep writing..!!
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