So I got this in my inbox - and I am posting this up as an arbitrary post so that I am updating my blog!
REQUEST NOW AVAILABLE.
The material you requested
is now available for collection
from the listed location. It will
be kept for you for 7 days
from the date on this notice.
AUTHOR: Osborne, Martin J.
TITLE: An introduction to game theory
CALL NO: QA269 .O78 2004
BARCODE: xxxxxxxxxxxxxxxxx
LOCATION: xxxxxxxxxxxxxxxxx
PICKUP AT: xxxxxxxxxxxxxxxxxxxx
Martin Osborne baby!!! Yeah baby yeah! A famous game theorist.
Wednesday, September 24, 2008
Tuesday, September 2, 2008
Why I am Single: An Economic Explanation
The theory and empirical work around human behaviour is generally in the realm of microeconomics (macroeconomics is the aggregation of microeconomics). And so this is the post on microeconomics which I said I would post in the previous post I posted.
Currently, I am in my final year of my undergraduate economics degree, and it is getting increasingly stressful. If I were to be asked why I am not in a relationship, if I want to be in a relationship, or when I want to be in a relationship, I would reply: (i) no time (ii) not at the moment (iii) not anytime soon. These more or less revolve around the concept of the limitations on my time, because of the workload I have to do at uni.
In economics, apart from thinking of time constraints, we can think of utility and cost (or disutility). Utility is sort of analogous to the 'happiness' I get from being in a relationship (utility covers more than happiness). Cost is the cost of being in a relationship.
Now, given my current situation, my cost function is a quadratic function, perhaps an arbitrary
C = 50t - 2.5t^2 where t = the time period, starting from zero. Let us assume that each unit of t represents a semester at university. Hence, t = 1 is the first semester of the first year; t = 2 is the second semester of the first year, and so on.
If I differentiate this equation with respect to t, I derive my marginal cost function, which is:
MC = 50 - 5t
Now, given my current situation, my utility function is also a quadratic function, perhaps an arbitrary
U = 1.5t^2
If I differentiate this equation with respect to t, I derive my marginal utility function, which is:
MU = 3t
Now, to maximise the utility I get from being in a relationship, I need to set MC = MU (this is an economics condition that is used for profit maximisation in firms).
Hence,
MC = MU
50 - 5t = 3t
8t = 50
t = 6.125
Hence, I would maximise my utility from being in a relationship after I graduate! Remember that each t represents a semester. There are 6 semesters in an undergraduate degree, and so a t of 6.125 implies that it would be most profitable for me to enter into a relationship after I graduate, perhaps a month or 2 after I graduate. Prior to t = 6.125, the marginal cost (disutility) of being in a relationship exceeds the marginal utility, or phrased differently, the cost of being in a relationship exceeds the benefit.
And this explains why I am still single!
Currently, I am in my final year of my undergraduate economics degree, and it is getting increasingly stressful. If I were to be asked why I am not in a relationship, if I want to be in a relationship, or when I want to be in a relationship, I would reply: (i) no time (ii) not at the moment (iii) not anytime soon. These more or less revolve around the concept of the limitations on my time, because of the workload I have to do at uni.
In economics, apart from thinking of time constraints, we can think of utility and cost (or disutility). Utility is sort of analogous to the 'happiness' I get from being in a relationship (utility covers more than happiness). Cost is the cost of being in a relationship.
Now, given my current situation, my cost function is a quadratic function, perhaps an arbitrary
C = 50t - 2.5t^2 where t = the time period, starting from zero. Let us assume that each unit of t represents a semester at university. Hence, t = 1 is the first semester of the first year; t = 2 is the second semester of the first year, and so on.
If I differentiate this equation with respect to t, I derive my marginal cost function, which is:
MC = 50 - 5t
Now, given my current situation, my utility function is also a quadratic function, perhaps an arbitrary
U = 1.5t^2
If I differentiate this equation with respect to t, I derive my marginal utility function, which is:
MU = 3t
Now, to maximise the utility I get from being in a relationship, I need to set MC = MU (this is an economics condition that is used for profit maximisation in firms).
Hence,
MC = MU
50 - 5t = 3t
8t = 50
t = 6.125
Hence, I would maximise my utility from being in a relationship after I graduate! Remember that each t represents a semester. There are 6 semesters in an undergraduate degree, and so a t of 6.125 implies that it would be most profitable for me to enter into a relationship after I graduate, perhaps a month or 2 after I graduate. Prior to t = 6.125, the marginal cost (disutility) of being in a relationship exceeds the marginal utility, or phrased differently, the cost of being in a relationship exceeds the benefit.
And this explains why I am still single!
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