A married couple is faced with a pile of dishes, a load of dirty laundry and a child that needs changing.
Should they:
(a) Each take one chore and divide the third in half?
(b) Hide, hoping the other will have no choice but to do all three?
Or
(c) Work out the best way to accomplish the chores while maximizing the leisure time and minimizing the work time for both parties?
If you chose "c", then you have just used a 200-year-old economic theory to solve a problem in your marriage.� Congratulations!� You have successfully utilized Chapter 1 of "Spousonomics", a new book by Paula Szuchman and Jenny Anderson.
In the book, the authors lightheartedly (but not un-seriously) answer "Yes!" to a question that no one has really thought to ask: Can macro- and behavioral economics help make your marriage a happier one?
Each of the book's ten chapters takes its name from a principle of economics, and the authors illustrate their application to your marriage using case studies gleaned from over 200 interviews with couples around the country.
In the accompanying video, we focus on three of the chapters:
As mentioned, this theory put forth by Adam Smith, along with the similar idea of comparative advantage, can be used to divide up your household chores more effectively than you might think.
You're in the middle of an argument that has gone on for hours, and you don't really even remember why you're arguing anymore.� But there's no way you will be the one to give in.� Sound familiar?� You're experiencing loss aversion, and according to the authors, understanding it will help you avoid these vicious cycles.� First demonstrated by psychologists Amos Tversky and Daniel Kahneman, this principle explains why we hate losing than we like winning. ��
We all know that being insulated from consequences could make people more willing to engage in risky behavior.� The authors say that in your marriage, this essentially translates into taking your spouse for granted - ie. not bothering to go to the gym because you're pretty sure they're not going anywhere.� The phrase originally comes from the insurance industry, which worried about their clients behaving too recklessly because their policy protected them.� Though governments around the world didn't seem to worry about moral hazard when they bailed out the financial system, Spousonomics explains why it is something you should recognize and address in your marriage.
For a serious and scholarly explanation of these theories, and some commentary from the authors, see the accompanying video.� In keeping with their lighthearted style, we hope you are entertained and informed.
Powered By iWebRSS.com
investing in silver bullion investing stocks markets investing
