"I think it's time now for Alfie to eat, Bu"
"Er, but he just ate mie. A bowl of noodle, all by himself"
"No, Bu, mie ain't no food, Bu... Alfie has to eat nasi, Bu. Now, that is food, rice..."
"I think it's time now for Alfie to eat, Bu"
"Er, but he just ate mie. A bowl of noodle, all by himself"
"No, Bu, mie ain't no food, Bu... Alfie has to eat nasi, Bu. Now, that is food, rice..."
And this is the best mother and baby hospital in town!
And this is the best mother and baby hospital in town!
I guess I shouldn't care too much either.
It reminds me of an email from Neil McCulloch over at Sussex some time ago. "How are the boys? Since you name your kids after great economists -- Alfie Marshall and Alwyn Young; would the third be Paul?" The email came a week after Krugman got his Nobel.
Actually I've been thinking of Armand -- after Armen Alchian.
But of course Anna says enough is enough.
So I came up with this brilliant idea. Put a security mechanism on the door. I bought one of those Japanese made household thingies. Then I put it on.
And it took only 5 minutes for Alfie to figure out how to get around the system. Now, instead of a lock he sees it as yet another new toy...
Anna: What's this [pointing to a picture of octopus]Picture taken from Wikipedia
Alfie: Ehm... gurita! [that's Indonesian for octopus]
Anna: Yes, it is also octopus
Alfie: No, it's gurita!
Anna: OK. In English it is octopus
Alfie: But Doctor Octopus is in Papa's Spiderman comic!
Anna: ?
Ramadhan, the fasting month, is coming. Unfortunately, there are some paradoxes that usually come with it – at least here, in the so-called largest muslim country. First, it is supposed to be peaceful, but that is the time where we see a few people destroy pubs, restaurants, and other places, in the name of religion. Second it is supposed to be a month of full self-control, but it is also the month where we notice some fasting people force everybody else to be in the same situation. As in “Look, I’m fasting, do not eat in front of me”.
And there is the third paradox. That is, the fact that inflation is always high in Ramadhan. We understand that prices go up in the months of non-harvest time, beginning-of-school time, and New Year’s. We also understand that right after the Ramadhan, people celebrate the Eid day with lots of food and new clothes and even new furniture. In the days of Ramadhan, mothers (and young fathers of the recent generation, if you like) cook lots of food. And then follows kolak and coconut water and martabak manis – many of these are absent in non-Ramadhan dinners at home. Nearing the end of the month, we observe a massive flow of people coming home: mudik. And traffic of SMS for Ramadhan greetings is so high; the networks are jammed many times. As result, most families end up with bigger expenditure in Ramadhan. Those in the supply side respond, too, of course. So, yes, finally prices go up quite significantly.
Sounds like there’s nothing wrong about it. Maybe no. But isn’t it strange that the main idea behind the fasting month is to restraint from consuming too much? Or at least, consume less than what you do in the other months? Or, as the sermon says, to experience the life of and therefore to empathize with the poor?
Happy Ramadhan, I wish you all. Maaf lahir batin.
semut-semut kecil
saya mau tanya
adakah kamu
di dalam tanah
punya mama papa
semua baktimu
akan kuukir
di dalam hatiku
s'bagai prasasti
t'rima kasihku
'tuk pengabdianmu...
In a stark contrast to Anna’s, my average search cost is, I think, too high. Ask me to buy everyday stuff -- bread, toothpaste, diapers, everything. Then I will buy them at the first store I find them. I don’t do comparison; I don’t go to other shops. What drives me in shopping is my assumption that for trivial stuff, prices are pretty much the same everywhere. The slight difference, if any, is just enough to cancel out the trouble to find the lower price – it is not enough to compensate for my time spending on searching.
Anna, on the other hand, is a born shopper. Ask her which department stores are now selling diapers 19,500 rupiah lower than the others. She knows exactly which one. She even remembers how much we spend on a box of ice cream a month ago (and tells me what a great deal or otherwise a rip-off I am about to do when I am buying the same ice cream now – me being clueless on the price change!).I asked her once, why she bothers all the trouble in shopping. She said, she did it with "almost no additional cost". I didn’t believe it, of course. But she argued that she had been doing it for a long time, she knew what to compare and where to do it. “If you do this”, she told me, “you need to invest quite a lot before you know what you are doing, because you have zero knowledge on smart-shopping”. “I did my investment long time ago, and I did it efficiently. So efficient, I can do shopping my way faster than you do yours”.
So I said, “If you know already which store would sell at what price, why then you still need to do comparison?” She responded, “You don’t get it, do you? Shopping is a good itself. I am willing to pay for being able to window-shop before I turn back and buy the one I want. You might think this is bizarre. But it is not more bizarre than your reading lots of those econ books of yours before you decide which one you really believe”. I thought she had a point there.
You might think the answer lies in the marginal utility of income. As theory puts it, marginal utility of income goes in the opposite direction with the level of income – just like any other good. If this theory is true, then you would predict that Anna earns fewer than me. But that would be wrong. (Here’s a little secret: she earns a lot higher than me!). So I resort to my first hypothesis. It’s my search cost. (I’m gonna need to test this sooner or later, I guess).