Ask the Economist

 

 

 

 

 

 

 

 

 

 

 

In this weekly column, readers ask their most private questions and get advice from an economics perspective.

Dear Economist,

Is it time to take the plastic wrap off my textbook now? – William Marvin

Dear Bill,

You showed initiative and responsibility when you bought the book. Now brings the question, why didn’t you open the book yet? Were you cautious and economical, keeping the wrapper on until you needed to read it, or were you careless by postponing your education? What is the marginal benefit of reading your book, are you getting the information you need from somewhere else? What extra costs do you face by not reading the book in your possession – will your grade or time efficiency suffer unnecessarily? Either you are a resourceful person who didn’t need that book yet and probably won’t ever need it, OR you are a person so afraid of commitment and self-discipline that you won’t use the resources at your fingertips. Depending on the answer, it may be time to take that plastic wrap off.
Dear Economist,

I really like my S.O. but…they’re sooo jealous!  Just because I have a good time with other people doesn’t threaten our relationship, does it? – Flirty in FTZ

Dear Fitz,

The two key economic principles we are dealing with here are “signalling” and “asymmetric information.” You are letting your S.O. know (and others) by your behavior that you are not an exclusive agent. In response, your partner is signalling you back with jealousy. You both are only able to guess what each other’s costs and benefits are in your relationship – so you both lack insider information. The Economist sees the anxiety and cautionary strategies – one of you is avoiding commitment and the other is attempting an ultimatum manipulation. These strategies are incompatible. You BOTH should be prepared to compromise or to call it quits. The economical course of action is for the two of you to clear the air and talk it out with one another. By adopting a transparent, clear communication strategy, you signal your S.O. to do the same. The negotiations will proceed to an arrangement – together or apart – which both of you can live with.
Need Advice? Write to Ask the Economist at estenardhudsonian@gmail.com. You might see your question answered in The Hudsonian!