Wednesday, October 31, 2007

"It's not you, it's me"

I think an economist is forced to both agree and disagree with this standard breakup line.

The false part (that everyone knows is false) is the "it's not you" part. Clearly rejection is less likely if one is more attractive (in whichever way you like to define it), all else equal.

That said, the "it's me" part is true! One only breaks up with their partner if they believe their outside options are more attractive than sticking together. Ones outside options are a function of their own qualities. Thus, one can be rejected because their partner has really good alternatives (opportunity costs). This implies that rejection need not lead one to change how they feel about themself.

This analogy translates to all sorts of rejection. And this is not a bad outlook to have. It's better than thinking "the line" is completely false, anyways.

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