econofdating101

Economics (of Dating) 101: Pt I -- Scarcity, Choice and the Production Possibility Frontier

7:27 AM

Introducing a new series where I attempt to explain basic economic principles through the dating scene in Hong Kong. Rule #1: Don't take anything I say too seriously.  
(Note: imported from previous blog)


Q: What is economics, anyway?
Explained in Gen Y terms, economics is simply the study of how one confronts FOMO (“fear of missing out” for you non-millennials). Young professionals, armed with idealism and Sheryl Sandberg’s Lean In, want it all—careers, love, family, friends, parties, vacations, spiritual enlightenment…but alas, physics is real and time waits for no one. Unlimited desires are constrained by limited time, money and our slowing metabolisms. As the three-dimensional body gradually acknowledges its impermanence in the space-time continuum, it gazes up at the universe of infinite opportunities and….freaks out. And thus economics steps in—how can we make the best choices? How can we make the most of our youth? Or, according to the self-help book my mom once bought me, how can I know if someone is worth pursuing in two dates or less??

Q: Sounds useful. But how does economics relate to dating?
Ah, it comes down to scarcity, scarcity, and scarcity. Scarcity is the root of all economic problems. Take this scenario at some swanky bar in Lan Kwai Fong, for example: 

Girl: Hm…there aren’t enough cute guys here above 180cm who are well-educated and have a good job, are funny and ambitious and loyal and kind and SINGLE.
Guy: There aren’t enough cute girls here who are not overly aggressive and ambitious and slutty and psycho. Man, I just want a sweet girl to take home and show my parents.

Because of the scarcity of resources, choices must be made. Expectations must be adjusted. Trade-offs must be considered. And this brings us to the next fundamental principle of economics—opportunity costs. In making a choice, we essentially give up the benefits of pursuing the next best alternative. If a guy spends $1000 on a nice watch, the opportunity cost would be $1000 worth of Michelin-starred meals he could’ve had to impress his date. If a girl spends her Friday night watching Disney movies with her best girlfriends, the opportunity cost would be a Friday night she could’ve spent going on Tinder dates and possibly meeting her real-life Prince Charming. Of course, these opportunity costs are relatively trivial, but as young professionals we do have to consider the significant opportunity costs of going to graduate school, committing to a stable relationship, having a successful career, pursuing a low-paying dream job, moving somewhere new, even getting married. 

Q: TLDR. I heard economists love charts. Where are the charts? I want to see some charts.
Okay, okay. Let’s talk about the production possibility frontier (PPF). The PPF shows the maximum possible output combinations of two goods/services an economy can achieve given fixed resources. Here’s an example of a PPF curve in the context of your life:
Moving along the PPF curve from B to D, we see that the more hours we spend on sleeping, the less hours we have for socializing, and vice versa. Points B and D illustrate “specialization”—a person at point B would be an expert socializer, one of those people with 7000 Facebook friends and is the life of every party, but tradeoffs incurred include severe sleep deprivation, dark eye-circles, and high risk of liver disease. On the other hand, a person at point D would reap all the physical and emotional benefits of an 8-hour-daily beauty sleep routine, but would celebrate these benefits alone in his room.  Point C would be an appropriate compromise, a path that most people take—give up some sleep and some socializing so that we can have an adequate amount of both. Point A shows an inefficient allocation of resources—this person is under-utilizing his time and doing too little of both! (ex: playing Candy Crush, reading celebrity gossip, watching Netflix, etc.) It seems that basic economic theory seems to agree with the “YOLO” principle—you only live once, so please live at full capacity and make the most efficient use of your time and money! Lastly, Point E is outside the PPF and is thus unattainable—there are only 24 hours a day after all. This could change with technological progress or if you get your hands on Hermione Granger’s Time-Turner.  

To illustrate the prevalence of opportunity costs in our daily lives, here are some extra PPF graphs explaining some common tradeoffs we make:



 That's all, folks! Tune in for Part 2 at some point in the future--we still have lots more to cover!




wine

Wine Notes: Four Common Varietals

9:10 AM

action, alcohol, art
Drink and date responsibly.
Whoever said "all men age like fine wine" was grossly misinformed. While only a select few men are complex, intense, and structured enough for long-term bottle aging, one can still appreciate the wide variety of men present on this planet--regardless of your palate, be assured that there will be some varietal that will please your senses and your soul. Below we have some tasting notes of four common varietals found in urban vineyards around the world:


Mr. Pinot Grigio

  • Tasting Notes: Mr. Grigio embodies the millennial dating philosophy of "expect nothing and you will never be disappointed." Easy on the eyes and on the palate, Mr. Grigio is most frequently spotted on midsummer Saturday evenings, wearing a cotton v-neck shirt and lining up for the latest hipster act in town. Marked by the light, albeit utterly forgettable, aromas of lemon, lime, and orange peel, he enjoys keeping conversation fun and easy-going, cracking politically-correct, self-deprecating jokes each time the conversation risks becoming too serious or awkward. Before you know it, you've already been chatting for four hours, had two pizza pit-stops, and danced to Bruno Mars at some random rooftop party. And yet, as dawn breaks, there is no pressure to keep in touch, no promises of "calling you back," no falling in love--just a pleasant souvenir of having met a nice boy, a memory that quickly dissipates once the stressful workweek resumes. 
  • Suitable for:  Commitment-phobes, post-breakup rebounds 
  • Drink by: Not suitable for aging. Drink immediately.


Mr. Champagne 

  • Tasting Notes: Your mother, your protective older brother, your friends--they all warned you about meeting guys at nightclubs. But Mr. Champagne roared into the driveway in his silver Porsche, sauntered out in a crisp Armani suit, and ordered a table for eleven, and all the bubbles went straight to your head. Giddy with intoxication, you giggle as he whispers sweet nothings into your ear while the DJ plays some bass-ridden beats in the background. As the music culminates in chants of "put your hands up in the air," Mr. Champagne looks you in the eye and solemnly proclaims: "...And just this year my hedge fund's assets under management reached US$10 billion." Wow. So you put your hands up in the air like you just don't care--you're going to be a trophy wife with three thoroughbred horses and a personal chef, starting tonight. Unfortunately, the sparks only endure a couple hours, the euphoria replaced by a flat, acidic taste in your mouth once you spot Mr. Champagne flirting with another girl in a short dress across the dancefloor. 
  • Suitable for: Fans of "players" and "bad boys", secret & non-so-secret gold-diggers 
  • Drink by: Once opened, consume immediately. Imbibe with a sizable grain of salt. 

Mr. Barossa Valley Shiraz

  • Tasting Notes: Mr. Shiraz is intense, bold, and mysterious. Years of toiling under the glaring Australian sun have led to his tanned, muscular frame, but what sweeps you away is not sight, but smell--beneath the deceptively jovial blackcurrant bouquet lies layers of complex, brooding, aromas: you sense tobacco, wet clay, smoked meat, black pepper...each additional scent a battle scar incurred from past disappointments and heartbreaks. You lose yourself in this labyrinth of odors, searching for clues: Who is he? What does he want? While on a date in an empty whisky bar, your conversation inevitably turns into a profound discussion of the need for God and the meaning of life. Alas, after his third glass of Scotch, he confesses in his rich, velvety baritone voice: "I have too much emotional baggage to be in a relationship right now." But what can you do? You are already drunk. Your senses overwhelmed, your emotions inundated, you allow his memory to linger just a while longer--for you know that everything after will just taste like water.
  • Suitable for: Hopeless romantics, fans of "dark, brooding types" 
  • Drink by: Store in a cool, dark place and drink when he is emotionally ready. 

Mr. Pauillac

  • Tasting Notes: Ten years ago, you met Mr. Pauillac through a mutual friend, and you thought he was absolutely the most self-absorbed prick in the entire history of homo sapiens. He mentioned his Harvard degree not once, not twice, but thrice, and you felt personally attacked by his harsh, aggressive, socially conservative comments. But time works wonders. Ten years later, you serendipitously bump into him at a networking event, and you are pleasantly surprised by his transformation. Did you get older, or did he get wiser? His off-putting tannins have since mellowed into a smooth, courteous, and confident demeanor, emanating calming, masculine aromas of leather and cedar. His pride and acerbic wit still remain, but having been matured in experience and insight, now stand out in the sea of spineless sycophants at this event. You even detect a whiff of violets--could he possibly have developed a subtle elegance over all these years? (Well, he didn't mention Harvard this time around.) You are intrigued, captivated, rejuvenated. What an interesting, complex guy. 
  • Suitable for:  Fans of the "Mr Darcy" archetype 
  • Drink by: Ready now but will improve even more with age.