Time and communication in economic and social interaction
AM Spence - The Quarterly Journal of Economics, 1973 - academic.oup.com
AM Spence
The Quarterly Journal of Economics, 1973•academic.oup.comAbstracted from the information carried by the time signal, time spent is likely to be
unproductive, and the time system inefficient. One might try to avoid incurring the inefficiency
cost by replacing the system with one based on price. The highest bidder gets the girl.
Unfortunately, the variance in the marginal rate of substitution of money for feminine
companionship may vary considerably over individuals, and perhaps more than the shadow
price of time. Therefore, the price system may do a far less adequate job of screening than …
unproductive, and the time system inefficient. One might try to avoid incurring the inefficiency
cost by replacing the system with one based on price. The highest bidder gets the girl.
Unfortunately, the variance in the marginal rate of substitution of money for feminine
companionship may vary considerably over individuals, and perhaps more than the shadow
price of time. Therefore, the price system may do a far less adequate job of screening than …
Abstracted from the information carried by the time signal, time spent is likely to be unproductive, and the time system inefficient. One might try to avoid incurring the inefficiency cost by replacing the system with one based on price. The highest bidder gets the girl. Unfortunately, the variance in the marginal rate of substitution of money for feminine companionship may vary considerably over individuals, and perhaps more than the shadow price of time. Therefore, the price system may do a far less adequate job of screening than the time system, in spite of its apparent advantage in terms of efficiency. One can imagine suitors hiring or trying to hire substitute sitters to gain access to the prize. One can also imagine the girl's parents or the society forbidding stand-ins (or perhaps sit-ins) to maintain the integrity of the screening system.
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