ECON 1 Lecture Notes - Lecture 15: Comparative Advantage, Speed Dating
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ECON 1 Full Course Notes
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People seemed to systematically - and rationally - change their standards depending on who showed up for the speed dating. They didn"t seem to be looking for the one . Ie: men prefer women who are not overweight. One night, 2x overweight women show up, men propose a date just as frequently. Respond to slim pickings by lowering their standards. Fussy when we can afford to be, less when we can"t. Importance of market opportunity > importance of preferences. The law of one price : identical products on offer at the same time, in the same place, with the prices clearly visible will go for the same price. Always one girl left, all 19 men get . 99, all women get 1 cent, last woman gets nothing. Shortage of just one man gives all other men massive scarcity power. Preferences of marriage (pregnancy) emerge from economic logic of risks, costs, and benefits.
