ECN 340 Chapter 8: ECN340 Week 4 – Chapter 8.docx
17 Feb 2014
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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 (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 (marginal cost) = mb (marginal benefit, but there is a possibility of exploitation! If he becomes the only one then he can ask for more the way you can"t have anything! : a married man who wants an occasional relationship fling can be exploited into giving more unless he has a choice, an alternative, sexual exploitation can occur if there are different levels of sexual appetite between two people. (one wants more than the other, as in all sexual exploitation cases, one partner forces the other to perform a sexual act as he/she would prefer not to do.
