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Chapter 8.docx

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Ryerson University
ECN 340
Thomas Barbiero

Chapter 8: Exploitation of Affections - In a loving relationship, one person is concerned about the welfare of the other - Each person in the relationship is both donor of gifts and a recipient - Each person realizes there is an unwritten social contract between the two: try to make the other person happy The Affection Model - Donor of a gift receives pleasure from giving to the recipient – the less expensive 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! - The recipient can subtly say, give me this amount or I will take nothing (deny you the pleasure of seeing me happy)! - If the recipient asks for “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 - 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 (“Your happiness is my happiness”, and vice versa) 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 I ordinarily would not do - But if she asks for too much, I can drop her even if I still love her! - “Women’s Liberation Movem
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