Ryn-onomics II
Hello again. If you've taken the time to read my last post, The Economics of Reactions Then I'd like to continue on. If that last one was too long or too boring for you then by all means skip this one too. Today we talk about...
Last time I gave you all this Formula: R = P + Xc(C) + Xt(T) - Xs(S)
or, (Reaction) = (positivity) + (some multiplier)(Chance) + (some multiplier)(Personal taste) - (some multiplier)(Strife)
So how do we get what these multipliers are? Well this is where the regression theory that I discussed last time comes into play. You get a bunch of reactions and you try to attribute what you think that values of C, T, and S are in each circumstance. Once you have enough R values with corresponding C, T, and S values you then use some very basic algebra and come up with the values of Xc, Xt, and Xs. Don't forget that Xt can change often so that's a tricky one to nail down. Now we have an equation that we can use to plot a person's reaction to a set of variables what can we do with it.
This is one of those paragraphs for people that don't know econ really well. If you're familiar with this just skip ahead. There are two curves in Econ that you need to understand right now. First is what's called "the Production Possibility Curve" or PPC. and the second is called "The Indifference Curve" or IC.
This is the PPC curve. All points on the curve are possible to produce. So you could produce at point a or any other point along the curve but you have to give up one thing to get another and as you go along you have to give up much more of one thing to get another towards the ends. The point c is possible but you're not using all your available resources and the point b is unreachable.
These are IC curves. There are many IC curves on an IC graph. In fact there are infinite. Each IC curve represents situations that are equally good. So have more of one thing and getting less of another is ok as long as you get enough of the one for what you're giving up of the other. The curves 2 and 3 represent a happier state than curve 1. Notice that curve 3 has a much different slope than curve 1 and 2. Some people are willing to give up much more of one thing to get only a little bit more of another. This is all relative taste difference.
Ok now on with Ryn-onomics. Now I akin the choices that people can make in their lives to be points on the PPC. Anywhere along that curve you'll find a bunch of choices and ways of living. Each of these points can be said to have a value or a cost. Since you have a value for R you have effectively what that person is willing to give for a particular point on the PPC. Where they chose to end up on the PPC will then determine witch IC they are on and therefor how happy they are with their choices and their life.
Here's an example. Joe's an alcoholic. He doesn't deal with his problems well. He's kind of a lazy guy. And so then Joe loses his job. Let's break it down.
First off the values of the situation. First there's lots of strife here. Let’s say it's a 4. Second Joe's got lots of options to do something here so T is big too equal to that of S so let's say it's a 4 too. But since what we know of Joe we also know that the options are not going to be to Joe's liking since it'll take some strong effort so the sign for T is negative. Lastly Joe has a chance to do something to effect positive change in Joe's life. Its not as great as the new Strife in Joe's life so let's put C at around 2.
What do we know about Joe? Well Joe doesn't handle problems well. His Xs is high. It's probably around 2.5. We know that Joe's a lazy kinda guy so his Xc is going to be small. Maybe around 0.1 perhaps? And lastly we know that Joe likes to drink so Joe's Xt is going to be large. Say perhaps a 4? Oh by the way. Let's give Joe a break here. Let's say he's a party type of guy. The kind of fellow that livens up a good time. But he turns to the bottle allot so his P value is going to be about 6. Not too high but not very low either. Time to plug it in.
R = 6 + (0.1)(2) + (4)(-4) - (2.5)(4), R = -19.8
Ouch Joe isn't going to take this well at all. So no we go to our PPC. Since all these values are arbitrary (I don't assign hard values really. It's more of a feeling for how people react) we can assign values to the choices that Joe has. He can look for a great new job since he's got some time on his hands. He can go on vacation for a while to some place he's never had time to go see. Or Joe could go drink his problems away. Or maybe Joe couldn't think of anything else so he could jump off a bridge. I'm sure there's more that you can think of. But since Joe's R-value is -19.8 we chart that against the curve and find that Joe would most likely end up drowning his life away in a bottle again. We chart him at some low point along the curve. Then we put the IC graph right over top of the PPC graph and find what IC curve intersects that particular point. That's how happy Joe is with his life. That's where's Joe's decisions have lead him.
Ok I think that covers all of it. Any questions? Probably. Just comment below. Tomorrow we'll talk about the last aspect of all this and that's Character judgment. What kind of people do you surround yourself with? What values do you look for? How does it all relate to... Ryn-onomics.
Last time I gave you all this Formula: R = P + Xc(C) + Xt(T) - Xs(S)
or, (Reaction) = (positivity) + (some multiplier)(Chance) + (some multiplier)(Personal taste) - (some multiplier)(Strife)
So how do we get what these multipliers are? Well this is where the regression theory that I discussed last time comes into play. You get a bunch of reactions and you try to attribute what you think that values of C, T, and S are in each circumstance. Once you have enough R values with corresponding C, T, and S values you then use some very basic algebra and come up with the values of Xc, Xt, and Xs. Don't forget that Xt can change often so that's a tricky one to nail down. Now we have an equation that we can use to plot a person's reaction to a set of variables what can we do with it.
This is one of those paragraphs for people that don't know econ really well. If you're familiar with this just skip ahead. There are two curves in Econ that you need to understand right now. First is what's called "the Production Possibility Curve" or PPC. and the second is called "The Indifference Curve" or IC.
This is the PPC curve. All points on the curve are possible to produce. So you could produce at point a or any other point along the curve but you have to give up one thing to get another and as you go along you have to give up much more of one thing to get another towards the ends. The point c is possible but you're not using all your available resources and the point b is unreachable.
These are IC curves. There are many IC curves on an IC graph. In fact there are infinite. Each IC curve represents situations that are equally good. So have more of one thing and getting less of another is ok as long as you get enough of the one for what you're giving up of the other. The curves 2 and 3 represent a happier state than curve 1. Notice that curve 3 has a much different slope than curve 1 and 2. Some people are willing to give up much more of one thing to get only a little bit more of another. This is all relative taste difference.
Ok now on with Ryn-onomics. Now I akin the choices that people can make in their lives to be points on the PPC. Anywhere along that curve you'll find a bunch of choices and ways of living. Each of these points can be said to have a value or a cost. Since you have a value for R you have effectively what that person is willing to give for a particular point on the PPC. Where they chose to end up on the PPC will then determine witch IC they are on and therefor how happy they are with their choices and their life.
Here's an example. Joe's an alcoholic. He doesn't deal with his problems well. He's kind of a lazy guy. And so then Joe loses his job. Let's break it down.
First off the values of the situation. First there's lots of strife here. Let’s say it's a 4. Second Joe's got lots of options to do something here so T is big too equal to that of S so let's say it's a 4 too. But since what we know of Joe we also know that the options are not going to be to Joe's liking since it'll take some strong effort so the sign for T is negative. Lastly Joe has a chance to do something to effect positive change in Joe's life. Its not as great as the new Strife in Joe's life so let's put C at around 2.
What do we know about Joe? Well Joe doesn't handle problems well. His Xs is high. It's probably around 2.5. We know that Joe's a lazy kinda guy so his Xc is going to be small. Maybe around 0.1 perhaps? And lastly we know that Joe likes to drink so Joe's Xt is going to be large. Say perhaps a 4? Oh by the way. Let's give Joe a break here. Let's say he's a party type of guy. The kind of fellow that livens up a good time. But he turns to the bottle allot so his P value is going to be about 6. Not too high but not very low either. Time to plug it in.
R = 6 + (0.1)(2) + (4)(-4) - (2.5)(4), R = -19.8
Ouch Joe isn't going to take this well at all. So no we go to our PPC. Since all these values are arbitrary (I don't assign hard values really. It's more of a feeling for how people react) we can assign values to the choices that Joe has. He can look for a great new job since he's got some time on his hands. He can go on vacation for a while to some place he's never had time to go see. Or Joe could go drink his problems away. Or maybe Joe couldn't think of anything else so he could jump off a bridge. I'm sure there's more that you can think of. But since Joe's R-value is -19.8 we chart that against the curve and find that Joe would most likely end up drowning his life away in a bottle again. We chart him at some low point along the curve. Then we put the IC graph right over top of the PPC graph and find what IC curve intersects that particular point. That's how happy Joe is with his life. That's where's Joe's decisions have lead him.
Ok I think that covers all of it. Any questions? Probably. Just comment below. Tomorrow we'll talk about the last aspect of all this and that's Character judgment. What kind of people do you surround yourself with? What values do you look for? How does it all relate to... Ryn-onomics.