Economics Applied

The weekend reunion was marked by the typical 'catch-up' conversations and events to mark those valuable memories down the road. To me, there was one topic of particular interest and validity to any individual, and I thought it'd be selfish to keep this to myself. Plus, I'm interested to hear other's takes and opinions on this specific bit of economics:

The simplest and lowest unit economics typically applies to is the average household. Essentially, the study of how a single unit, whether a household, a company, a society etc., utilizes limited resources. Economics is a social science; it concerns people's motivations and incentives when making choices dealing with scarce resources. Make note: this conversation in no way turned technical. Consider the intro a background explanation/definition for the actual subject: the importance of value and the cost of actions and decisions as applied to the individual.

The catalyst for this conversation bludgeoned our adventure-filled day via cellular theft. I think I face most adversities with a face of calm, armed with reason and rationale, but when it comes to havoc wrecked on my preferred sources of communication, I become frantic and harried. It's not pretty, so thank goodness it was not my phone that was taken. From this experience an interesting point was made: the point of loss and the hardest hit in losing a cell phone boils down to the data that is either irreplaceable or is a hassle to replace.

On the off chance someone applicable reads this post: consider leaving the SIM card behind if you're going to steal a phone. If not to assuage guilt then as a simple good deed.

So back to the economics: this tragedy eventually steered the conversation towards why someone would find and then keep a cell phone when it would be so easy to return it. Guilt was discussed as was karma, but things whittle down to incentives, motivations and an individual's sense of value and cost. It whittles down to simple economics. For some, the cost of a guilty conscience and fear of karma outweighs the benefits of gaining a $350 market-priced phone. For some, the cost would be bearable with the appropriate reasoning.

On a side note: I believe that the human ability to reason and rationalize anything is one of the most dangerous weapons we possess. I may save this for another blog post, for another slow day...

So, this post isn't as titillating as I thought it'd be; I guess you just had to be there. The actual conversation was enthralling. Regardless, it is an interesting angle to tackle the issue.

Eventually, the discussion wound down to what we value most. My number one value are the relationships I've fostered and grown. My proof and metric is the time spent insuring my availability in case the need for contact arises, as well as the time spent communicating. Of course, this blog somehow stands as evidence against this statement, but I wholeheartedly confess that all my relationships are valued. Granted, some are valued more than others, but who in this world isn't faulted with bias?