Me, an Economist speaks...again!

Actually, Economics is not that bad. It’s worse.
But, no. This post aint about Eco-bashing or anything even close to that. In fact, its quite the contrary. I realized, that some of the Models used in Eco. Could very well be the factors on which I could base mine. Yeah, they would be taught in MBA Schools some decades later, and no, the subject won’t be Economics.

Lemme warn all, if you from NMIMS, and have just taken the Economics paper, this is not what you would want read. Seriously !

So here goes. Let’s compare two people. Mr. X and Mr. Y.
Assumption – 1: It is very important to note here that both X and Y are guys. We will handle the case with gals later, in later sections.

Each of these friends, have their own set of family and friends. Each of the family member or friend has their own expectation (Demand) from X and Y respectively. Both these guys have a price (Price) that needs to be paid to meet these expectations.

Assumption 2 - X has many more friends and relatives than what Y does. So, the requirement of love and affection from X would be higher as well.

Now, higher the sacrifice that X makes, lesser would be demand from the people around him. This follows the assumption that the people around him are very understanding. Also, more the sacrifices he makes, more demands of those around him would he be able to meet. This would have been shown by the usual Demand Supply Curve, with the Equilibrium Point E. Similarly, the same holds true for Y as well.

However, it is possible, that X may not be able to supply all the needs of the all the people around him. This is true for all point before the Equilibrium Point E is met. At E, Mr. X achieves his objective of meeting everyone’s needs.

Consider the case with Y. He does not have many people around him.
Assumption - 3 that he is not sad, but pretty alrite with this fact.
He can meet the needs of people around him pretty quickly, i.e. by making lot less sacrifices than X, and has still something left in his reserves.

Assumption 4 - Let X meet Y, and let them become friends. (Trade happening)

So, each time the Demands at Mr. X’s place rise (probably because the people back home have become less understanding, and thus more demanding), he can approach Mr. Y for help (Import). On his part, Mr. Y is already without too many people, and has lot to offer (Export). He agrees to help X. And helps X. This is subject to the fact that X is not able to supply what is demanded of him. At Equilibrium Point E, he wont require Y’s help.

Now comes the Interesting part. What happens if X is a gal? i.e. Mr. X becomes Ms. X. What are the chances of Ms. X adding a “Tariff” for the “Imports” of Y? Here is where my Model changes. It goes as follows:

Ms. X adds tariff (t) on the Help offered by Mr. Y. But, Mr. Y still helps. She further adds tariff to the help given by Y. Y helps more. This process will continue till the Threshold Point ‘Th’ is reached. At this point Y gives up helping X. X realizes the true worth of Y. She tries to get Y back into her life. Depending on how badly the threshold of Y is broken, he either comes back or….finds another gal, Z (Remember, we had not assumed that this is a 2 country…oops, person model !!!). This is called the “Playing Hard to Get Theory of Bollywood"

This can be explained with the equation below:
Sy = e^t at t < Th,
Sy = 0 at t >= Th,

Where,
Sy is Y’s supply of help and love to X,
e^t is the exponential growth of tariff t that X applies,
Th is the Threshold Limit of Patience and Perseverance of Y.