ECN 340 Lecture Notes - Demand Curve
17 Jun 2013
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Document Summary
In a loving relationship, one person is concerned about the welfare of the other. Each person in the relationship is both a donor of charitable expression (gifts) and a recipient. Each person realizes there is an unwritten social contract between the two: try to make the other person happy (it makes us happy seeing the other happy) Donor of a gift receives pleasure from giving to the recipient - the less expensive the gift the more often he/she will give- recall the downward sloping demand curve. Gifts can be in the form of money, a box of candy, simply listening to the other person, or providing a sexual experience. But there is a possibility of exploitation! (one of the partners could say they won"t accept less than) The recipient can subtly say, give me this amount or i will take nothing (deny you the pleasure of seeing me happy) !
