ECN 340 Lecture Notes - Lecture 4: Decision Rule, Holding Hands, Mira-Bhayandar Municipal Corporation
24 Feb 2017
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Cannot be fully explained with economic analysis, can certainly make progress. Good evolutionary reason for the interest in it; the survival of the human species. Sex as a service: holding hands, kissing. Avoid passing judgement when we are trying to understand behaviour. For most, it is the intensity of the sexual experience that make it so appealing. Most willing to pay higher cost to experience it compared to having pbj sandwich because of higher intensity of pleasure. Food, alcohol and sex have all been shown to release dopamine in the same region of the brain (pleasure centre) Interpersonal utility comparison: impossible to do-different people like different things. Some do indeed get a higher utility from a sandwich and it depends on the timing. As price rises, quantity demand falls-and vice versa. Rational individual consumes up to the point the mb=mc of other goods and services (what are you giving up)
