On Thu, Nov 14, 2002 at 10:29:29PM -0800, Jonathan Kalbfeld wrote: > This has become a very big problem for me, because I don't want to spend > any money. Not one red cent. I don't enjoy anything because all I can > see any more is opportunity cost. I have gotten to the point in my life > where I can't enjoy anything--probably not even a weekend in Hawaii > because I see it as a missed investment opportunity.
I feel the same way. Does learning about economics tend to shift one's intertemporal preferences towards the future? Are we behaving more rationally because we see the future opportunity costs more clearly or less because we're putting too much weight on the costs that are most easily quantifiable? > I look at every single "bargain" or "sale" with the eyes of a skeptic, > knowing that the counter-party in the transaction must have a reason for > what they are doing. They must see this item as worth less than what they > are selling it for so why should I buy it for the sale price? If you understand why stores have sales, you can better take advantage of them. The paper by Hal Varian that john hull mentioned can be viewed online at http://econpapers.hhs.se/article/aeaaecrev/v_3a70_3ay_3a1980_3ai_3a4_3ap_3a651-59.htm if you have access to JSTOR. One thing to keep in mind is that when stores offer rebates, they expect only a fraction of buyers to actually fill out the forms and send them in. If you know you can remember to send them in, you can actually buy something at a lower net price than what the store thinks it's worth.
