Download this podcast SARAH GREEN: Welcome to the HBR Idea Cast. I’m talking today with Paul Oyer, Professor of Economics at Stanford’s Graduate School of Business. SARAH GREEN: So Paul, I’d like to just kick off by talking a little bit about the economic concept of search costs.
Against that dramatic backdrop, I thought I would use this occasion to reflect on the state of economics, not least in helping us make sense of such catastrophic phenomena. Indeed, it would probably not be an exaggeration to say the economic and financial crisis has spawned a crisis in the economics and finance profession - and not for the first time.
We just buy one share of whatever company it is or we just buy one ton of soybeans or whatever it is.
But when we’re picking a life partner, everybody’s different. So in an ideal world, we would have the ability to search every single person out there and pick the ideal match.
We lived in Princeton at the same time, but we’d never met each other. As I honestly needed to, I put on my profile that I was separated, because my divorce wasn’t final yet.
And it was only when we went to this marketplace together, which in our case was JDate, that we finally got to know each other. And I suggested that I was newly single and ready to look for another relationship.