Gregorio E.

Baccay III, DPA

Think Out Loud

Email: gregbaccay@gmail.com

Economics of love
Love is in the air as the month of love is here. It is undeniable to think that economic theories can be
applied to love. The best things in life are said to be free. Say for example, the beautiful sunrise, it’s free. The
air we breathe, it’s free. We don’t need money to see the sunrise nor we use it to buy air for us to live. If we
think about these in economic terms, however, it leads us to a conclusion that the best things in life are not
actually free, since everything has opportunity costs. Opportunity cost refers to a benefit that must be given
up to acquire or achieve something else. It is the cost of a foregone alternative. Let us apply this to being in
love. When we love someone, naturally it is free but little did we know that it is expensive due to opportunity
costs. For example when a man meets a woman and they are both in love with each other, so they go on a
date not only once but many times. The love that they have for each other is free but the costs of dating is
not. Moreover, how about the time lost to be productive when they are on a date? One author said, “I keep
myself busy with things to do, but every time, I pause, I still think of you.” Dating someone entails clear
economic costs considering the amount that will be spent on spending time together. The dating scene is a
gamble, a game of chance as stated by Nelson Pavlosky. Much like playing the stock market or starting own
business, there are significant risks involved, and similarly there can be significant rewards for taking that
risks, Pavlosky added. This means that in a relationship, it has to be nurtured, it has to be given time and it
has to be evaluated properly as potential risks are everywhere. Say for example, you break up because of a
third party or you are not really meant for each other, what will happen to the money and time you have
spent for your relationship? This refers to economic loss. On the other hand, if a relationship is stable and
the love for each other remains high, then this is the reward of a relationship. We call this in economics,
economic profit.

According to Hendrick and Hendrick (2003), love is one of the strongest emotions a human being is
capable of experiencing. It is very powerful but sometimes can be a source of pain. Basically, it can affect us
in our spending pattern and the way we think in making sound economic and financial decisions. When one
is in love, it creates a demand, as lovers tend to satisfy each other. So, if everyone is in love, it possibly affects
the law of supply and demand and therefore has inflationary effect. Hence, it is best to love moderately so
that its effects to prices of commodities is controllable. Satisfaction is the key towards a successful
relationship and in keeping this, requires more expenditures. This we call utility - the additional satisfaction
or benefit derived by consuming a product.

The costs and benefits of love are far too numerous and complicated to describe. What matters most
is how we love and how much we are willing to sacrifice to make it works. Finally, I will end this article with
a beautiful quote from Bob Marley, “He’s not perfect. You aren’t either, and the two of you will never be
perfect. But if he can make you laugh at least once, causes you to think twice, and if he admits to being human
and making mistakes, hold onto him and give him the most you can. He isn’t going to quote poetry, he’s not
thinking you every moment, but he will give you a part of him that he knows you could break. Don’t hurt him,
don’t change him, and don’t expect for more than he can give. Don’t analyze. Smile when he makes you
happy, yell when he makes you mad, and even miss him when he’s not there. Love hard when there is love to
be had. Because perfect guys don’t exist, but there’s always one guy that is perfect for you.” We don’t have
an economic term that best fits these descriptions but I call this - gugmang giatay!

Advance happy valentines day everyone! Cheers!