Economics is about choice – and choices occur in all parts of our lives. One area is personal relationships. Are we making the best of our relationships with family, friends and sexual partners? Increasingly economists are examining human behaviour in such contexts and asking what factors determine our decisions and whether such decisions are rational.
A recent book looks at the economics of marriage and goes under the title of ‘Spousonomics‘. Its authors, Paula Szuchman and Jenny Anderson, use economics “to master love, marriage and dirty dishes”. As they say:
Every marriage is its own little economy, a business of two with a finite number of resources that need to be allocated efficiently.
They look at ways in which such resources can be allocated efficiently. They also look at apparently irrational behaviour and seek to explain it in terms of various ‘failures’ (akin to market failures). They also examine how these failures can be rectified to improve relationships.
So is this economics stepping on the toes of relationship counsellors and psychologists? Or is this the legitimate domain of economists seeking to understand how to optimise in the context of scarce resources – including time and patience?
Spousonomics gets to heart of the matter Belfast Telegraph (19/1/11)
Run your marriage with ‘Spousonomics’: A new book says applying economic rules with transform your relationship Mail Online, Lydia Slater (31/1/11)
Spousonomics: How Economics Can Help Figure Out Your Marriage Book Beast (31/1/11)
Spousonomics Lesson #1: Loss Aversion YouTube (15/1/11)Economist’s Explanation For Why Getting Married Isn’t Rational Huffington Post, Dan Ariely (15/1/11)
How Economics Saved My Marriage Newsweek, Paula Szuchman (30/1/11)
Want your marriage to profit? New York Post, Sara Stewart (29/1/11)
Spousonomics: blog, Paula Szuchman and Jenny Anderson
Questions
- How would you define ‘rational behaviour’ in a personal relationship?
- Why may marriage be a better deal generally for men than for women?
- Give some examples of asymmetry of information in marriage and why this may lead to bad decision making?
- Give some examples of risk averse and risk loving behaviour in personal relationships?
- Why are many actions in marriage apparently irrational? Could such actions be explained if the concept of ‘irrationality’ is redefined?
- Why may a simple demand curve help to explain why sexual relationships tend to wane in many marriages?
- Why does moral hazard occur in marriage? Does a combination or moral hazard and asymmetry of information help to explain divorce?
- Should marriage guidance counsellors study economics?!