Thursday, March 7, 2013

The Economics of Sex!


Economics works here also, but a little differently. For readers’ entertainment and disagreements

Most of the time, sex is a consumption good, do and get away. Sometimes it is an investment good. Invest today, returns after 9 months. Timing of investment is crucial. If it happens prior to marriage, DOOMED (volatile investments)! Post marriage no problem. Couples wish to invest once and consume rest other times, parents want at least twice. Governments distribute free contraceptives advocating invest less, consume more. Too much investment produces India and China, too much consumption produces France and Germany.

The system has evolved over time. During earlier times, people depended on barter, traditional “give and take” system. However, barter presume the rather improbable double coincidence of wants. Thus to smoothen transactions, financial markets evolved and money based services became available. Market takes care of the prices and quality. Today the market is so perfect that with your purchasing power, you can get your class of service.

Optimizing between service innovation(different postures) and scalability are the competitive drivers in this industry too. ‘Kamasutra’ is the quality innovation document, the most exhaustive, ancient open source, in fact the highest informally cited piece of work. An erotic piece of art with powerful visuals! Probably people were tempted to prioritize its’ translation in all societies. This is a classical case of where all four factors of production land(venue), labour, capital, entrepreneurial skills(ability to take on site risks) contribute to final price determination.

And last but not the least, its’ a PERFECT example of GLOBALIZED TRADE! 

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