爱的经济学.ppt

Important concepts of economicsthat are really useful: Sunk Costs: what we need to leave behind as we look forward to the future Some people may have invested too much of their time and emotion in a relationship, so that they are heart broken and keep thinking about the past, even though the relationship is finished. Some people keep thinking about the cost of their investment, and cannot make the decision to terminate a money losing venture. A bygone is a bygone. Nothing can change the fact. We need to learn to leave it behind and face a new day. Marginal Thinking For every decision, there is a cost and a benefit that arises from that decision. Comparing the marginal cost and marginal benefit arising from that decision is the basis of rational decision making. The Chinese emphasize the need to know where to stop知止. The idea is that going overboard is like not going enough. Good things can turn into bad when the point of optimality is passed. As long as Net Marginal Benefit is positive, however, more is better.。 Opportunity Cost: Weighing what you will get against what you will give up(the opportunity cost) when you pick a path of action is the basis of rational decision making. There is something to give up whatever you do. Benefit, Utility, Happiness;Material Goods; Mental Goods Benefit has to be the benefit toward enriching one’s life, or the benefit of enriching someone else’ life. The quality of life is the ultimate concern for every single decision. The quality of life has two components: physical goods and mental goods. Physical goods are rival. What you consume becomes no longer available to someone else. Mental needs are often satisfied via the consumption of physical goods, such as conspicuous consumption. But it is possible that one can satisfy one’s mental good needs while also benefiting others. Such happiness is more enduring and benefit more people. Key mental goods Sense of security(as opposed to sense of insecurity or thr