Ukrainian webcam chat - Economics dating market

This could take the form of a dater misrepresenting himself online, or an executive sugarcoating things to boost their stock prices. Executives can't stretch the truth beyond belief, just like you can't say you're 29 and show up as a 50-year-old.When it's immediately obvious that you aren't telling the truth, people will be less likely to believe what you say in the future. It's like an analyst who says positive things about his firm's stock.Could you explain your theory of "romantic unemployment"?

It comes back to a theory called "cheap talk," which is a branch of game theory.

This framework considers the potential conflict between a party's own preferences and the person he or she is trying to attract, to analyze when (or if) it's sensible to hide information or lie. To be rational, the truth can only be mildly off-base.

According to Oyer, you can see everything from why executives "sugarcoat" their company's situations to why qualified candidates remain jobless, reflected in the world of online dating. Hey, it worked for him: Ultimately Oyer met his match online.

Turns out online dating (or, say, the marketplace of life partners) operates a lot like other markets, says Paul Oyer, an economics professor at the Stanford Graduate School of Business and author of . Below, Oyer shares some of the insight he gained through his own forays into the online dating world.

The difficulty of this two-sided search leads to what I call romantic unemployment, because we see this with the job market. In both cases, search is a two-part process in which both parties are considering their options. If we could see all our choices and assess them at no cost to us, everything would be easy and we'd each have the best possible match.

For both groups, there is a penalty for being picky. But when you go to this marketplace to shop, you have to spend time going through your options, or profiles.On a dating site, lots of members mean lots of available potential matches.Assuming the algorithm of each site you visit is good at matching members, if you're given 10 matches from a site with 100 members and 10 from a site with 10,000, bigger is better.In your book, you explain that dishonesty in an online profile makes economic sense. Economists think of lying as a rational thing to increase utility, or happiness.Where parties' interests aren't completely aligned, we expect some people will misrepresent the truth.He'll swear up and down that it has been performing well — otherwise, he'll scare off investors.

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