THE ECONOMICS OF RELATIONSHIPS: ISHQ KA ANALYSIS

• This graph is not generic. It’s an aggregate representation of the complexities.
• The initial part might not apply to starving and non-inclusive economic institutions like Engineering Colleges
• If you were born into a relationship, just stick to the X axis 

(DISCLAIMER: Romantics who think that rationalizing love through the use of calculative & dissenting methodologies such as these is a shameless act of profound coldness can stop reading this article here and launch a protest against me. You can refer to this website for the Dharna (Protest) Calendar, www.seeyouatjantarmantar.com)

For others, well if you suck at mathematical analysis and haven’t gotten any better with the passing years, I have bad news for you. 'Love & Relationship' has ceased to be the simple equation that it was and is now a raging polynomial of the highest degree possible. So any attempts at coolly taming it into submission through casual addition and subtraction would prove to be futile at best.

Equation from the era of ‘eternal love’:

X_(Romeo) + Y_(Juliet) - Z_{(the unfair world/circumstances)} = 100 + W_{(Bonus!! the world/circumstances are in your favor)}

Unfortunately today’s equation has far too many variables to count and the basic premise of Economics – limited resources, unlimited wants and judiciously striking a balance between the two dictates how you deal with this equation. It comprises making the right investments, the right trade-offs, suitable risks, understanding market forces and much like everything else – a good solid dose of luck.

Clearly, fitting in the variables in the equation is no mean task. Fit in the wrong values and the result is the last bad mathematics paper that you had with that dreaded grade/score that sends shivers down the spine.

While poets till date, tirelessly pour-out lavish praises about the un-restricted beauty of love and how it transcends boundaries and is devoid of constraints, I would take a more prosaic stand here and show you why this equation is quite flatteringly complex and difficult.  

Relationships: The Investment 

It’s not that relationships in the past have been devoid of complications, but since liberalization of the market space, the number of relationships has boomed and so have the complexities. Now you don't even have to bear the burden of the License Raj (marriage) to explore new opportunities; the market is much more free and open. And in this liberalized market space, it’s the dynamic interaction between various forces which eventually shapes our equation of relationship and love. 

From the Indian perspective, till about a few years back, forces like caste-issues, religion issues and economic differentiators led to the death of many promising young relationship ventures (although some rebellious entrepreneurs still went ahead with their investments and businesses with great results). Now, add to the equation - career, locations, opportunities, choices, family, and the endless list of personal whims like – well-read, witty, considerate, affectionate, looks, ‘sweep me off my feet’, traveler, sharp, caring etc. etc.  and woah - that's complex now! (more on this bit in my next piece on marriages in India) 

Clearly with so many factors at play, it’s an investment that would require a fair amount of wisdom. So yes, in all probability, you are not marrying some ‘Raj’ who FYI is the only guy to have failed in the history of some prestigious University and whose only good deed in your fathers books is applying ‘desh ki mitti’ on an injured pigeon’s body (after conveniently breaking the statue of the goddess for a crate of beer!). Expecting that to work out would be expecting a business like a water cum entertainment park bang in the middle of the Thar Desert to work successfully! 

The factors are multiple - National and International Trading of calls during Long Distance Relationships, frequent shifting of base of operations and striking a balance between populist(family and partner's) and growth(personal) related measures. Phew! 

I haven't even scratched the surface here! But still - Good luck with the investment and economics!

Failed Investment: The post Break-up analysis

My heart goes out to ladies who have kissed many ugly frogs in the hope that Mr. Prince would pop up, and gentlemen, whose entrepreneurial streaks have at best come a cropper but still move around in the hope of an Angelic Investor who shall invest more than just faith in them.

So your investment failed and now you rush to your close circle of advisers (your best buddies) and consult them. Post break-up, most close friends turn into Economists with specialization in Sunken Costs (irrecoverable costs) and poor investments. And much like traditional economists, they propose that we should not let sunken costs influence our future investments.

 You will also be warned (if you fail to find that wisdom yourself) that investing more into this failed product would further ruin your current situation. So you should shun any Mallyasque attempts at saving your Kingfisher Airline of Love.  

A bad break-up, much like recession, makes you an ailing economy– you can limp ahead on SOPs and subsidies (flings, casual dates, new work assignments, distractions, friends) but it’s only a structural change in the set-up (personal growth, self-confidence) and/or fresh investment (new relationships) which can boost  the over-all scenario.

But cheer-up! The slump is always followed by a rise! 

Real Life Quotes and Economic/Investment Related Interpretations

Some quotes on relationships & love and their direct and in-direct economic interpretations (full credit to friends who quoted some of these - sometimes with the Economic Interpretation in tow!) 

“Not everyone can afford the luxury of being in love”

Interpretation

Purchasing Power Parity – Everyone around you is dating or marrying but your situation and constraints just make it very difficult for you. Yes- that feeling of deprivation. 

Risk of default – Even if you take that risk and plunge into one, there is always the risk of default

"People start getting tired of each other. Eventually love wanes off. Everyone is replaceable; it’s a lesson I have learnt the hard way."

Interpretation

Law of Diminishing Utility – In Shakespeare’s finer words – ‘familiarity breeds contempt’. The more you access something, the less favorable it becomes. 

 “How do you end up with guys like him? Suddenly someone just pops up in your life and then it all crashes? We told you – just be careful and find a nice stable guy to settle down with. Your parents are looking out for a guy for you”

Interpretation 

Risk-prone investment, investing in-spite of the market turbulence and risks.

Your parents are looking out for a guy for you – Govt. Bonds, low risk of default

“Warned you! Such a deep level of emotional attachment in one go?? Plus you are not settled yet. Long term thoughts?” 

Interpretation

Warned you! Such a deep level of emotional attachment in one go?? – Concentrated risk, investing everything in one go

Plus you are not settled yet – Potential Default Risk

Long term thoughts - Future Returns 

"Relationships have to be nurtured like a good business. They evolve and grow slowly and yield rich dividends gradually. You have to grow along with it and ensure neither of you stagnates" 

"Relationship and Dating is like the stock market. You can play smart but you can never be 100% sure. But that doesn't stop you from buying stock"

 Interpretation

Pretty straight forward ;) 

"Some say Love runs the world, I believe Economics does" - Well that sums it up then J