It seems that since I've named this blog economically, all the posts are doomed to have an economic bent. It could be worse; I could be posting incessantly about the financial crisis. But that would be boringly macro.

I recently had to have my car repaired. A cylinder in the engine was misfiring, and the coil had to be replaced. The cost was pretty high. 

And, as I shared the story with others, it became clear that we all place values on certain things in completely different ways. That's right folks, our utility curves don't match. 

A few friends remarked that I could have had it done cheaper somewhere else. And while that may have been the case, the cost for me would have been too high. 

I might have had to call around to many different places, I would probably have had to make an appointment, and the quality of the work may have been lower. 

Because I have a relatively good job, I place a higher premium on my time than say a minimum wage worker. That is not to say that my time is fundamentally worth more than theirs; I'm just willing to spend a higher amount of money to save the same amount of time. 

I'm also willing to spend more money to forgo inconvienences like talking on the phone, or going without a car for more than a day. And I have the luxury to be able to afford a higher quality mechanic than my brother's girfriend's cousin who kinda knows where all the pieces go.

And my own utility curves change from day to day. Had I not had plans that I really didn't want to cancel, I could have bit the calling bullet and did a little shopping around, and saving a little cash, but not having a car for a little while longer. 

But I'm a spoiled girl who loathes stress and drama, so I handed over the cash and got my car back the next day. As a result, I got to eat a mediocre lunch and watch a mediocre movie, but the dinner and dessert was fantastic, and the company was even better. 


2 comments

  1. Lin on March 12, 2009 at 3:52 PM

    Some real nice flattery there; thanks and likewise. But let's get one thing clear..."boringly macro"? Macro is so much more fun than that boring micro stuff.

     
  2. Crystal on March 31, 2009 at 11:56 PM

    Dude, macro is completely boring.

    And why doesn't blogger tell me I have comments? Bastards.

     


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