Tuesday, July 15, 2008

Random thoughts on the economics of love

Lessons in Love, by Way of Economics - Ben Stein

Credits: http://www.nytimes.com/2008/07/13/business/13every.html?em&ex=1216267200&en=ff5eb790af565bed&ei=5087%0A

-"For most of us, diversification in love, at least beyond a very small number, is impossible, so it’s necessary to do a lot of research on the choice you make."

Lol, I guess portfolio diversification doesn't work when it comes to love. I suppose people do diversify when they casual date a couple people at a time. I follow the research idea. Hence, I can't like someone before I "do my research". However, I'm not sure whether or not my research always turns out correct.

-"Realistic expectations are everything. If you have unrealistic expectations, they will rarely be met. If you think that you can go from nowhere to having someone wonderful in love with you, you are probably wrong."

This is what's wrong with romantic comedies and dramas. They cause us to have unrealistic expectations of falling in love. But, I can't help but watch and believe them. Nothing wrong with being optimistic. I guess there's a difference between being optimistic and realistic.

-"When you have a winner, stick with your winner. Whether in love or in the stock market, winners are to be prized."

Why didn't Ben Stein tell me how do we know when we have a winner? I suppose that happens when you and your s/o fall in love. That's when you've found a winner. Someone once told me that s/he didn't like to start relationships because what if someone else better came along later. I think in that case, you would never find a winner since you're always waiting for him/her to appear.

After reading all this, I'm still not any closer to knowing what love is. What is love?

1 comment:

gallantknight said...

hmm, just a thought - even a "sure winner" in stocks may not give you any returns for years. Ie: even if the company has fantastic earnings, its stock price may not move or even fall because of various reasons - perhaps due to a recession or a huge bear market like today.

I think that part of the analogy doesnt quite fit the parallel to love. I think that if you've researched well enough into the "fundamentals" of your prospective partner, he/she would most probably give you the "returns" that you're looking for, quite unlike the rather fickle stock market.

Am very suspicious of investors/economists who advocate that fundamentals are king when it comes to the market :D