Table of Contents:
1. In your own words, summarise the article. What is the main message of this article? What is the economics of love?..................................................................................................(3)
2. Explain the principle of perfect competition. Do you think that the same principle is applicable to analyse the market for ‘love’? In the literature, what are the main models used in the economic analysis of ‘love’? Do you think that the ‘love’ is consumption good?.................................................................................................................................(5)
3. According to author, “For most of us, diversification in love, at least beyond a very small number, is impossible, so it is necessary to do a lot of research on the choice you make”; in light of the article and based on your own research, do you think that the Cost-Benefit analysis can help one to choose one’s partner efficiently? What is the purpose of dating games? Can you propose some mechanism to improve the efficiency of dating games?(7)
4. The existing theory suggests that a competitive market is more efficient than a monopoly, yet the author suggests for the monopoly when he talks about the long-term romantic relationship. Please explain why the author suggests so. Can you also provide two real world examples where government policies create monopoly markets?........................(10)
5. ‘Realistic expectations are everything’. Evaluate this statement in light of this article. Relatedly, can you evaluate the role of expectations in the Global Financial Crisis?....(12)
6. Reference………………………………………………………………………………(15)
1.
The article is quite a remarkable one when it comes to analyses of several economic theories and concepts and associating how human emotions like ‘love’ seem to have the same fundamentals. The demand and supply economic interactions have been astonishingly found to be inherent in the...