- here’s Tim giving answers to every single problem one might have
- Akerlof’s market for lemons in practice
- Don’t take advice from “experts”
Tyler Cohen’s post mentioned above, on long-distance relationships, is very interesting in itself and it links to other great advices by Tim Harford in his Dear Economist column from The Financial Times. Below an excellent summary from Tim on the Alchian-Allen theorem and its long-distance relationship connotation, for all those struggling to maintain long-distance relationships. So here’s the least you should bargain for:
The theorem, briefly, implies that Australians drink higher-quality Californian wine than Californians, and vice-versa, because it is only worth the transportation costs for the most expensive wine. Similarly, there is no point in travelling to see your boyfriend for a take-away Indian meal and an evening in front of the telly. To justify the trip’s fixed costs, you will require champagne, sparkling conversation and energetic sex. Insist on it.
I also think Tim’s answer to “should women propose?” couldn’t have been phrased better. Links to what I was putting forward as conclusion in a previous post of mine 🙂
