Real World Econ

Anyone who had spoken to me recently knows that I'm pretty obsessed with the study of economics - partly because I have this kick ass professor and partly because I love understanding how things work, specially things as relevant as econ. 
Anyway, this interview with Tim Hartford, otherwise known as The Undercover Economist, made me laugh. 


My wife and I started dating when we were 18 and were still young when we made the decision to get married. We’re in our young 30’s now. I told my wife that she should feel happy by how fondly I view her, as deciding to get married at a young age means that my opportunity cost of getting married was high, as I had a lot of years ahead of me. She said that’s the second most unromantic thing that I’ve ever said to her. Any suggestions on how I can reword this specific attempt of flattering her? — John


I would recommend introducing your wife to the theory of real option valuation. Point out that the option to marry her was likely to remain open for many years after you originally met. By exercising the option so early, you showed your bride that the net present value of your relationship was large and positive and your uncertainty about the decision was very low. (Translation: your love burned with a strong and constant flame. But why would she need the translation?)

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