Ask the Economist

 

 

 

 

 

 

 

 

 

 

 

Ask the Economist

Economics is the science of decision-making.

Every decision is an economic decision.

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

 

Dear Economist, I don’t always know when someone is attracted to me.  When I do, it’s usually two years later. WTF? – Verily

Dear Verily,  Full Opportunity Costs are often not known until well-after the die is cast.  All of us are making decisions within bounded rationality and cannot know everything we would like to know at the time we take action.  Your question belies a preference to allow others to make the first move. Economists refer to this as deferring the first-mover advantage.  No doubt you perceive high costs to alternative strategies where you risk rejection and humiliation. He who hesitates is lost.

 

Dear Economist, My wife is so fine and I care about her a real lot.  But sometimes I get to thinking she is really just using me to promote her modeling career.  Should I confront her about this? – Tom Brady

Dear Tom, Every relationship involves an exchange of consumption complementaries. Sounds to me like you are both making gains from trade.  Let Gisele know she is appreciated by you and tell her why you care.  Have her tell you her hopes and dreams – and really listen. Are the personal aspirations you each have as individuals compatible?  You are discounting your present value and worried about your future value to her. You both must know that her modeling career is like your pro football career – it will be over long before you want it to be.  Make investments in one another now to prepare for the days ahead – your future will very different.

 

Need Advice?  Write to Ask the Economist at estenardhudsonian@gmail.com  You might see your question answered in the Hudsonian!