Economics dating market
He'll swear up and down that it has been performing well — otherwise, he'll scare off investors.While disclosures may have changed after the economic collapse, there's no question people who have more to gain will say something positive.In your book, you explain that dishonesty in an online profile makes economic sense. Economists think of lying as a rational thing to increase utility, or happiness.Where parties' interests aren't completely aligned, we expect some people will misrepresent the truth.Keeping the idea of thick markets in mind, aren't small, niche sites inefficient?The thing is, you can be a generalist dater or a specialist dater.Sure, you might keep finding better dates and trading up.But at a certain point, according to search theory, it's no longer worth the trouble — most of us have something else we need, or want, to be doing with our time.
It comes from a type of search theory, which is a situation where people can't find exactly what they want, even if it is out there somewhere, because the act of searching itself is so costly. Because of search theory, there are eligible and attractive single people and talented potential employees who are unemployed. You can get caught up easily if each time you decide whether to evaluate more profiles, you think, But what if The One is in this next batch?
It comes back to a theory called "cheap talk," which is a branch of game theory.
This framework considers the potential conflict between a party's own preferences and the person he or she is trying to attract, to analyze when (or if) it's sensible to hide information or lie. To be rational, the truth can only be mildly off-base.
You'll see more options over time, and the matches will likely better suit you.
This is what is called a "thick market" — one with a lot of options — and a thick market is usually more efficient.
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In fact, teen promiscuity rates have fallen and there is an economic story behind it.