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the blog about nothing and everything

Monday, June 16, 2008

An inefficient market

I dont know what it is, maybe it has something to do with the Sex and the City movie but conversations of late with friends always touch on the issue of how hard it is to date. These conversations though end up with a bunch of explanations and theories and I dont think it ends resolving all the questions...maybe that's the point, just to talk about it.

The problem with "dating markets" is that it's pretty primitive. It's not as efficient say as the capital market. Do you know how many transactions take place at the New York stock exchange? Why is the dating market inefficient? Because it still operates exactly like a barter exchange. Trade in the barter system happens when there is what we call a "coincidence of wants" Trade happens when you have something I want, and I have something you want. Now doesnt that sound like the dating market?

So I am still amazed when two people actually get together. Some people will call it magic. It is quite hard to have this "coincidence of wants." But it does happen, happens often enough that we all believe it will happen to all of us. Then we wonder why not when it doesnt...

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