Economics and Relationships
- Sabrina Pekarovic
- Feb 2, 2021
- 2 min read
Valentine’s Day is approaching, so I thought I would share some relationship advice from an Economics perspective. Psychology may be considered a better area to study in order to explore this subject, however, economic reasoning and theories are a good way of explaining this market. William Nicholson explains it the best in his book; The Romantic Economist. I will be explaining some of his theories mentioned throughout his book.
I’m sure you’ve all heard of the term “hard to get”. The term is the same in relationships, and when making economical decisions. By restricting your ‘supply’ you increase your ‘price’, so your significant other values you more, as they think they have earned exclusive access to your attention.
Something very important when investing is security. Don’t invest in a risky market If you’re looking for something that will be stable in the long run. Sacrifice appearances for the personality of your significant other. Looks depreciate over time, so can be prioritised in the short run. But if you’re looking for stability in the long run, the only thing that will keep your company running is the quality of your product, such as inner personality, or intellectual interest.
Learn to bargain. If you are trying to invest your time into a tough market, show them that you have the ability to acquire substitute goods. Consumers may choose to switch to a cheaper alternative. Similarly, in dating, if someone is ‘increasing their price’ or ‘playing too hard to get’, and become ‘too expensive’ for you, suggest that you could easily go to the other, cheaper alternative, and they might lower their price.
Lastly, I have come to the conclusion that getting involved with someone is like the term “opportunity cost”; which means the value of the next best alternative that must be sacrificed or given up in order to obtain something else. Dedicating your time and energy to someone comes at a cost of sacrificing other things. If you think that there is something more worth investing your time and energy into, make the choice of switching your opportunity cost elsewhere. At this age especially, your energy should be invested in meaningful things, not only relationships. Right now, invest your time and energy into yourself and your studies. Get into a relationship with your education. It will guarantee success in the long run.
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