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Monday, January 26, 2009

Paradox of Endowments

I just read half of 'The Undercover Economist', and i suddenly have an economic view (for a limited time only) of what my holiday is like. I call it the

Paradox of Endowments : The more resources you're given, the more you tend to waste it.

Resource #1: Time
-At home, the rational me should've used the extra time to keep up with A2 work. Instead, i waste it on keeping up with addictive mangas. The Undercover Economist's explanation? 'When there's more time, there's a bigger incentive for the rational consumer to maximise utility, i.e doing things that brings the most joy in life, hence ignoring things that are seemingly more productive'. Conclusion: i hate homework....

Resource #2: high-speed broadband
-Refer to the explanation on resource #1

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