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ECN 340 (193)
Lecture

Exploitation of Affection lecture notes .docx
Exploitation of Affection lecture notes .docx

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School
Ryerson University
Department
Economics
Course
ECN 340
Professor
Thomas Barbiero
Semester
Fall

Description
Exploitation of Affection -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) The Affection Model -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 -Gifts are given until MC = MB -But there is a possibility of exploitation! (one of the partners could say they won't accept less than) Exploitation Continued -The recipient can subtly say, give me this amount or I will take nothing (deny you the pleasure of seeing me happy) ! *blackmail -If the recipient asks "too much" the donor may be better off giving nothing! -The ability to extract a larger quantity from the donor depends on the number of alternative recipients for the gift (if there is monopoly power, will have to give in or you will lose them, but if someone else, you have alternatives) -The exploitation of the donor will occur only to the extent that the recipient is unconcerned about the welfare of the donor -If the recipient cares, then any reduction in the donor's welfare will be a reduction in the recipient's welfare i.e. "Your happiness is my happiness" (and vice versa) (If you're unhappy, i'm unhappy too) MIDTERM***Why would this person not be good-looking? (this person looks ugly, its their own fault) They haven't put the effort in to look good. Romantic Relationships -Defn: my happiness depends on the happiness of the person i love -If i care about my wife, she can make me do things for her I ordinary would not do (women has her wrapped around her fingers (they are dedicated to make you happy) , or vice versa) -But if she asks for too much, I can drop her even if I still love her! (even though you love someone you can leave them because the cost is greater than the benefit) -"Women's Liberation Movement" has in effect made
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