Here's how I see the world
I'm attracted to Economics not because it's gives me a new view of the world but because it matches the view that I already have. So without much ado I'd like to show you all how I see the people around me and I'm going to do it by reducing everything to an economic model.
For those of you who haven't taken much Econ I'll give you about 5 sentences to catch up. Better read carefully here. In what we call econometrics economists use what's called regression analysis to determin the standard linear cure that explains correlation between two variables. For instance how much more growth does a farmer get for any ammount of fertilizer he uses on his crops. So after enough testing you get a curve that can be explained like this: (crop yeild) = Q(fertilizer) + X. Q is therefor the coefficient of the variable of (fertilizer) and explains to effect of fertilizer. So if value of Q is 2 then every time you add 1 unit of (fertalizer) you get 2 more (crop yield). X then is the unknowns. Like how much sun is the field getting. How much rain and how much does that really effect the outcome. In a perfect equation there is no X variable. OK that's all you get. I hope you're still following along.
So when I judge a person potential reaction to a set of variable (any given situation) I throw it all into an equation I've built up over time for that particular person. I have kind of a general formula that I like to use.
It goes like this: R = P + Xc(C) + Xt(T) - Xs(S).
Examination of the variables:
R == reaction = simply how I predict someone is going to react to something. As a side note the Value of R is a bit misleading. R should really be R(V), Where (V) is a value of how introverted or extraverted the person is.
P == positivity = A constant that represents how the person sees the world. How happy they are about life in a vacuum.
(C) == Chance = I'd say opportunity but that's a term that's already used several times in the field of economics that it'd be too confusing to use it again. This variable is the fist aspect of the equation that changes. It represents the Chances the person will gain to effect positive changes in their life. (eg. opportunity to make more money, have a good time, or set up future happiness) This variable is usually the hardest to pin down because there are many chances in almost any situation but they're not always apparent.
Xc == Coefficient of Chance = How will a person react to a chance. this value can fall into three places. > 1: At this level any chance that falls into a person's lap will be utilized to it's fullest extent and delivering very high returns. = 1. Any Chance that comes along will give Average levels of return. < 1 > 0. It's takes more Chances than necessary to effect any positive change in this person's life. = 0. No matter what comes along in this person life they will never accomplish anything of value or substance. the value of Xc is made up of a person work ethic, intelligence, creativity, and will power.
(T) == Personal Taste = This is bar far the trickiest variable of the bunch. One of the tricks is to determine, when you plug it into the equation, when the variable should have a positive or a negative value. (eg. a bar trip would have a positive sign for someone that liked drinking but a negative sign for someone that hated it.) Also part of the (T) variable is the alternative options available to a person. As a whole the (T) variable represents how much a situation will appeal or not appeal to a person.
Xt == Coefficient of Taste = This is a coefficient that will change on the fly. If a person is feeling particularly lazy or ambitious the coefficient will change going up with ambition and down with laziness. Also involved is the person's sense of fairness. Is a situation fair for others as well. A very selfish person will have a high Xt If a person is feeling vindictive or sympathetic towards someone else Xt will fluctuate.
S == Strife = Standardized measure of the negative effects of a situation. This could include work loads, pressure, criticism, or any other types of negative externalities. It's important here to understand that the variables do not change depending on the person. A person better able to handle say... getting fired will have the same value of (S) in their reaction equation.
Xs == Coefficient of Strife = Most importantly this value is how much a bad circumstance will effect a person's mental state and their subsequent actions. SO much gets compressed into this one value. Some examples are Support systems (faith, friends, family) Emotional stability, self-esteem, and sense of humor. Very often this value and the value of P will be correlated but not necessarily.
In any given situation you get new variables for C,T,and S. Plugging those variables into the equation will result in a value R. Well great. Now what do we do with R? Good question class. Stay tuned because I'll get to that in my next post, The Economics of Decisions. and Following that I'll move right into the economics of character evaluation. After all that if you've read it all I think you'll understand me as well as I can ever explain to you.
For those of you who haven't taken much Econ I'll give you about 5 sentences to catch up. Better read carefully here. In what we call econometrics economists use what's called regression analysis to determin the standard linear cure that explains correlation between two variables. For instance how much more growth does a farmer get for any ammount of fertilizer he uses on his crops. So after enough testing you get a curve that can be explained like this: (crop yeild) = Q(fertilizer) + X. Q is therefor the coefficient of the variable of (fertilizer) and explains to effect of fertilizer. So if value of Q is 2 then every time you add 1 unit of (fertalizer) you get 2 more (crop yield). X then is the unknowns. Like how much sun is the field getting. How much rain and how much does that really effect the outcome. In a perfect equation there is no X variable. OK that's all you get. I hope you're still following along.
So when I judge a person potential reaction to a set of variable (any given situation) I throw it all into an equation I've built up over time for that particular person. I have kind of a general formula that I like to use.
It goes like this: R = P + Xc(C) + Xt(T) - Xs(S).
Examination of the variables:
R == reaction = simply how I predict someone is going to react to something. As a side note the Value of R is a bit misleading. R should really be R(V), Where (V) is a value of how introverted or extraverted the person is.
P == positivity = A constant that represents how the person sees the world. How happy they are about life in a vacuum.
(C) == Chance = I'd say opportunity but that's a term that's already used several times in the field of economics that it'd be too confusing to use it again. This variable is the fist aspect of the equation that changes. It represents the Chances the person will gain to effect positive changes in their life. (eg. opportunity to make more money, have a good time, or set up future happiness) This variable is usually the hardest to pin down because there are many chances in almost any situation but they're not always apparent.
Xc == Coefficient of Chance = How will a person react to a chance. this value can fall into three places. > 1: At this level any chance that falls into a person's lap will be utilized to it's fullest extent and delivering very high returns. = 1. Any Chance that comes along will give Average levels of return. < 1 > 0. It's takes more Chances than necessary to effect any positive change in this person's life. = 0. No matter what comes along in this person life they will never accomplish anything of value or substance. the value of Xc is made up of a person work ethic, intelligence, creativity, and will power.
(T) == Personal Taste = This is bar far the trickiest variable of the bunch. One of the tricks is to determine, when you plug it into the equation, when the variable should have a positive or a negative value. (eg. a bar trip would have a positive sign for someone that liked drinking but a negative sign for someone that hated it.) Also part of the (T) variable is the alternative options available to a person. As a whole the (T) variable represents how much a situation will appeal or not appeal to a person.
Xt == Coefficient of Taste = This is a coefficient that will change on the fly. If a person is feeling particularly lazy or ambitious the coefficient will change going up with ambition and down with laziness. Also involved is the person's sense of fairness. Is a situation fair for others as well. A very selfish person will have a high Xt If a person is feeling vindictive or sympathetic towards someone else Xt will fluctuate.
S == Strife = Standardized measure of the negative effects of a situation. This could include work loads, pressure, criticism, or any other types of negative externalities. It's important here to understand that the variables do not change depending on the person. A person better able to handle say... getting fired will have the same value of (S) in their reaction equation.
Xs == Coefficient of Strife = Most importantly this value is how much a bad circumstance will effect a person's mental state and their subsequent actions. SO much gets compressed into this one value. Some examples are Support systems (faith, friends, family) Emotional stability, self-esteem, and sense of humor. Very often this value and the value of P will be correlated but not necessarily.
In any given situation you get new variables for C,T,and S. Plugging those variables into the equation will result in a value R. Well great. Now what do we do with R? Good question class. Stay tuned because I'll get to that in my next post, The Economics of Decisions. and Following that I'll move right into the economics of character evaluation. After all that if you've read it all I think you'll understand me as well as I can ever explain to you.