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Short term Benefits vs. Long term Costs: A progressive look into the utility of the early adopter theorem in “Games” by Big L



This masterpiece is Mr. L’s first foray into the game theory of romantic relationships. With that introduction we shall begin.

Check it, a year ago I did a show for some dough
Puffed a bag of hydro then broke out on the low
And on my way out, it was a female on my trail
who followed me from the stage to the Benz SL
I asked honey her name, she replied, "Monique"
Soft and sweet, from her head to feet, hotter than heat


Mr. L begins by detailing with a vivid description of the woman whom he is addressing in the initial scenario. We know from this stanza three defining characteristics right off the bat; the woman is named Monique, she is very effeminate and approachable and she is undeniably aesthetically appealing. Let us pause for one second to state for the purposes of clarity that judging from the tone of the piece thus far, these are all positive qualities in the mind of the author. Mr. L is intrigued by his initial interaction with this woman and in satiating his natural curiosity he will most undoubtedly seek to learn more about this mysterious enigma.
Mr. L also illuminates the fact that to this point he has put little to no effort in gaining the affection of this mysterious woman. As a point of presentation he tells us that he was in a relaxed state of mind after consuming a measurable amount of THC, he attempted to leave the facility inconspicuously, but nonetheless Monique followed him zealously and persistently. It is important to note that at this stage in the game, Mr. L has incurred no costs to obtain the hypothetical benefit of this mysterious women’s affection (we can assume benefit based upon the positive description and enjoyment of interaction described in the stanza). While, at this particular point he has not seen any “tangible” fruits to this benefit, we have only just began our journey.
From a business perspective, Mr. L has begun to create wealth without actually investing any of his own capital into the enterprise.

Jump in the passenger seat, let's go get somethin to eat
She said I was that Roc-a-Fella she'd been dyin to meet


Here we see that Mr. L begins to incur some costs to maintain the benefit he is receiving from Monique’s affections. To continue receiving this benefit Mr. L agrees to drive the woman (incurring costs of gas and wear and tear to his automobile decreasing it’s market value) and take her out to dinner (incurring the costs of the bill, tip and opportunity costs of potentially using that time to create wealth of some form). We have dramatically departed from what was initially a low cost high benefit venture to what is now moving closer towards equilibrium or possibly disequilibrium.
To make an intelligent determination of where Mr. L currently stands, in regards to the profit making venture he is undertaking with Monique, we must begin to interpret the relative value of the potential benefits and the likelihood that these benefits will be realized.
First, the benefit that Mr. L is currently receiving can most aptly be broken down into social company and the emotional benefits as a result of his amorous sentiment. To place a value on these two services, we must look to see if there is a comparable service in the free market and then determine what the value of that service is naturally in that market. Upon research it was found that there is a comparable market service for social companionship. Elite Miami Escorts (http://www.rates.elitemiamiescorts.com/) charges between $600-$800 dollars per hour for the service of social companionship. This means that, absent Monique, Mr. L would have to pay, on average, $700 an hour for the service he is now receiving. We also found a comparable market service for creating and enhancing amorous sentiment. Cynthia’s One Girl Phone Sex Service (http://www.cum4phone.com/payments.htm) charges $2.25 a minute or $135 an hour for a similar service. This means that, absent Monique, Mr. L would have to pay $135 an hour for the service he is receiving right now. At this point in the analysis, Mr. L is receiving the equivalent of $835 an hour worth of benefits, yet he has only incurred the costs of about $110 an hour (this is assuming he drives an H3 and is eating at a moderately-high priced dining establishment). The current profitability of Mr. L’s venture at this point is staggering. He is receiving immediate short term benefits for his enterprise and as a rational actor will mostly likely continue to pursue it and maximize his profits.

I tried to hit it first night, she said she wasn't a freak
Yeah right - it's all good, so I waited a week


Now that Mr. L has established his venture and created a profit maximizing opportunity for himself, he is wondering: how can I expand this venture to create new economic opportunities? The next most logical step for Mr. L is to try to “hit it.” For the uninitiated, the phrase “hit it” is a common cultural usage to describe having sexual intercourse. With vigor, but perhaps in haste, Mr. L attempts to expand his enterprise on the first night, by attempting to have sexual intercourse with Monique. She respectfully declines, letting Mr. L know that he will have to continue his enterprise at its current operating capacity until the market is ripe for expansion.
Mr. L shows his willingness to continue the operation at this rate of return, however he provides a limitation. He only finds the venture, as it currently stands, worth undertaking for one more week and if he does not begin to see greater profit margins, he threatens to close down operations altogether and seek new wealth making opportunities. This is quite peculiar, as it stands Mr. L is benefiting to the equivalent of $725 an hour in his current situation, but demands more. It is clear that while Mr. L is content in the current situation, in a week his reservation wage will rise to a level higher than what he is currently receiving.

Then one night to my crib she decided to creep
Knocked on a nigga door and woke me outta my sleep
I let her in before you know it we was doin our thang
I drove her home, and said tomorrow give me a ring
It was about a month later when she gave me a call
with some bogus ass story that was off the wall
Claimin she's pregnant with my child, I think that's quite foul
How is that? I wore a Lifestyle


It becomes clear that before the week deadline, Monique acquiesces to Mr. L’s proposition. At this point Mr. L has earned a new benefit in his venture; sexual intercourse (see hittin’ it). The value of this service is much harder to detect, as it is illegal to purchase in the United States. However, when we look abroad, we find that a comparable service to the one Mr. L is receiving would cost him $600 an hour, absent the willingness of Monique. We have just seen the profits to Mr. L’s enterprise skyrocket! He is now earning the equivalent of $1,325 an hour and will most assuredly remain an actor in this market. If we are to assume a typical 2hr session plus another 6hrs of platonic co-mingling; Mr. L is earning the equivalent of $2,650 a day or a staggering $689,000 a year! Let us pause and just contemplate the future earning potential of this enterprise considering the amount of growth it has made in just one week!
However, an unforeseen cost rears its ugly head. It appears while blindly seeking short term earnings; Mr. L has overlooked the long term costs of his enterprise. While his enterprise will have 9 more months of earnings at this rate of return, he will eventually become a father and incur significant costs. It is important to note that had Mr. L never undertook this venture there is no way he would have incurred these measurable expenses.
This begs the question: in pursuit of attractive short term benefits, did Mr. L miscalculate the earning potential and enter the market without contemplating all the relevant factors?
To come to a conclusion on this matter we must determine what the true value of his long term costs will actually be. According to NuWire Investor, by the time a child graduates, the parents will have spent a total of $432,885. This money could buy 28 pounds of gold bullion, and would have accumulated into $964,236.93 before tax in a traditional IRA. Taking the true costs of the child, $964,236.93 (rounded to a million for simplicity), we find that Mr. L, during an equivalent period, will have earned around $11.7 million dollars worth of utility in his profit making venture. When you subtract the costs of the child we find that Mr. L has now earned $10.7 million or $629,000 a year.
This new figure is conspicuously lower than what Mr. L was previously earning without the child, but more than what he was receiving before sexual intercourse. Is the figure as it stands now, worth having undertaken the venture in the first place? Let us move further through his fields of logic to make this determination.

A lot of broads is fraud, they'll set you up Baby Pah
Some'll try to get you stuck up, some'll fake pregnancy
Most are after the dough, and the fame basically
Yo you can't make a hoe a housewife kid
Pick the wrong chick - could be a lifetime bid


It appears from this negative reflection on his choice that he is not satisfied with having entered the market to begin with. Mr. L is now left to nostalgically look at his position at time 0 (before entering the market) with fondness, and work within the current confines of his predicament to attempt to make the most of his all-too-quickly undertaken journey into the business world. While, Mr. L's cognizance of his mistake does him no service, his anecdote provides invaluable market information to future comers and shows the inherent costs associated with becoming an early adopter.

Argument Presentation: A+


This post first appeared on Raponomics, please read the originial post: here

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Short term Benefits vs. Long term Costs: A progressive look into the utility of the early adopter theorem in “Games” by Big L

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