You can explain love if you knew Economics :)

The views expressed may not be entirely what I believe but I shall go through the subject for just the fun of writing around a subject a lot of people are interested presently. By the end of your read a lot of people might think really awkward about me, others might feel that what I have told in parts are right but others are just for fun. There might be others who would just want to add points. All of you guys are welcome to enter your comments which would give me an idea about the readers. And henceforth I can make a better blog suiting all you people.

Where do we start? Hope you people have read my older blog about “unconditional love”if not do read it as it a small one and shall be a pre requisite for this one .. just kidding. click on the word -unconditional love

As always,everyone needs know my motivation of coming up with this blog and so the story..

From my college days have had a lot of friends,both girls and boys having their significant other. Being friend of all these people gave me an opportunity like none other to hear all their stories. Mind you I never ask for the stories I always like telling stories.
So I know at least from half a dozen people how the process of being love happened and how they went about informing their prospect. Why prospect? For obvious reasons!!! Not everyone hits the bull’s eye.

Now that I have called it a process I thought why I don’t apply all my knowledge about Economics and marketing and explain the process. Forgive me thy lord for using thee names…

Read this definition found in American Heritage Dictionary (1992):

A deep, tender, ineffable feeling of affection and solicitude toward a person, such as that arising from kinship, recognition of attractive qualities, or a sense of underlying oneness.

Sure that most of the American have read this definition and have internalized it. Just before I get to the economics of love I thought that the definition touches upon several complexities. Particularly daunting is the idea that love is indescribable.

Of all the basic emotions, love is the least clearly defined. Our conceptions of anger, fear, shame, grief, contempt, disgust, and joy may be fuzzy around the edges, but they are clear enough so that we can communicate about them. We feel we are able at least to distinguish between painful emotions, such as fear, grief and shame, and pleasurable ones, like interest, excitement, and joy.
Love as it is often perceived like a mystery, but it can be described I thought.

So the attempt.

So why economics and love? Ask those who have girl friends…Dating and Cash…both go together. Financial planning is what one of the guys who studies with us does ! Reason he has a family.
I searched for what economist had to say about love and marriage.

One Mr. Becker writes “A marriage market develop ‘shadow’ prices to guide participants to marriages that will maximize their expected well-being.”

Check out your Decision Modeling notes to know what a “Shadow price” means.. don’t ask me.

There is this guy Frank: “People with well-defined preferences act in purposeful ways to choose mates that best promote their material interests.”

What does a financial manager do before a project? Common guys everyone in BIM at least knows about those 50 problems in 3 hours.
No prizes for guessing – a simple cost benefit analysis (NPV)

Positive NPV i.e., the Market works!

This model is a creation of mine having read all these people. Getting into the “Theory of love”.

( Hey don’t be surprised to really find a paper called “Theory of love”. I just found on an msn website “theory of marriages” )

Love is a perpetual growth process. In Economics it’s learning over a horizon. Heard of the learning curve having an effect on production?

Thus love is
A process- life long learning process,
A dynamic process-changing

Having told it to be perpetual growth need to justify it. It grows with someone’s learning and personal growth (maturity).

I'll get more blunt with details. I'll draw a parallel between love and a firm.

You start a firm – Start up and here you start Dating.


Then you have a personal commitment, which in recent times is a rarity. Just in few days time that I have had some news which really supports what I meant. This is incorporation and Optimizing operation.

Termination of relationship (saddest part) by death or divorce like a firm being sold out or going in drains.

People, going concern concept doesn’t work for both the firm and love in reality. Now I know the concept is either a bogus or it is for a real eternal thing which can’t be seen.

I haven’t finished. Now actually starts the details of the theory.

First in an organization you conceptualize what u need to do?
So what does a guy do? Dream about the Barbie Doll !! “Ennakku oru girl friend venumada” In a company you should know what is your long term and short term goal? Heard of the Vision and Mission.

Second, prelimnary market analysis to be done for the concept. I won’t test your knowledge. The guy goes on a hunt!
Have you studied success stories ? or you have heard of the lyla majnu failure stories only and still want to venture ? What values you bring in to make it a success story for yourself? Competition????

Now that you know there is a market,you finally start your firm. What is the start up cost? When do you think you`ll break even? How much are you ready to sacrifice for today to see a better tomorrow? The guy starts courting a girl.
Corporate communication is so very important these days. How much and what to tell your girl? You remain somewhat mysterious - i remember this,one friend telling me. I don`t get it !! anyone to help me?

The company starts production and what happens over the years the efficiency comes down. Don’t you guys see what I mean. There are concepts of return to scale I think. Brush your fundamentals. Similarly as return diminishes in long run in a firm if not over hauled; in marriage through its stages of Engagement, marriage, honeymoon and children love starts to diminish.

Caution: not every firm finds it self in this cycle of lowering efficiency.

Diversification into new products also happens in some case – “grass is greener always….” This is not for all case. Doesn’t suit everyone. As especially in India with lot of hue and cry by the left parties about diversification. Oops! Its disinvestment.
Sorry got it wrong here.

Then the termination stage.

Having talked about the product design no one knows what the real product is? No one reveals it- a product is a well guarded secret for a firm to run.
But people who want to start up an Organisation what do they do? Insider information ?

Hey guys i realised... lot of us are Entrepreneur.. did i say us? Pardon me.

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p.s: I am not always right. What I learnt in class also might not hold good everywhere. Remember the screw driver funda- just because you have the screw driver you can’t be using it everywhere.