Textbook Definition of Equimarginal Rule: The condition wherein the ratio of marginal benefits to marginal costs must be equal for all good consumed to maximize total utility. For example, if I consume goods x, y, and z, I will optimize consumption so that MBx/MCx = MBy/MCy = MBz/MCz.
She-conomic Definition: Suppose I am dating two guys, Xavier and Yuri, and the cost of an additional date with each guy is equal to the constant opportunity cost of my time (let's say that's equal to $10). Suppose I can allocate 6 hours/week to dating, and I am currently spending 3 hours on each guy. As it stands now, the marginal hour I spend with Xavier gives me $25 worth of marginal satisfaction, while the marginal hour I spend with Yuri gives me $40 worth of satisfaction. Am I efficiently organizing my time resources? No! Mathematically, MBx/MCx = 25/10 and MBy/MCy = 40/10. Since 40/10 > 25/10, I can get more satisfaction from the marginal minute spent with Yuri. As such, I should spend less time with Xavier and more time with Yuri (maybe 1 hour and 5 hours, instead of 3 hours and 3 hours).
Does this sounds like rational behavior to you? Or is this theory just eccentric/heartless ranting? Of course, I would never endorse using the equimarginal rule to justify truly heinous, hurtful behavior, as seen in John Tucker Must Die. That said, I think even the kindest, most sensitive parent would counsel their son/daughter to focus on spending time with the individuals who make us most happy, and vice versa.
No comments:
Post a Comment