Part One (stay tuned for Part Two, which is much more abstract)
Economics is based, fundamentally, on one principle: Rationality. Or, more simply, that man makes decisions upon well reasoned thoughts after weighing the costs and benefits of each alternative. Within the economic/mathematical framework, this idea is 'proven' based on the following type of example:
-----Steve is at a cupcake store. He is very hungry and wishes to have a delicious blend of sugar and cream topped with unholy amounts of toppings. He notices that the specials for the day feature three different choices, all for the uniform price of $3.99 (It is a rather fancy boutique-type cupcake store). His choices are: Red Velvet cupcake, Double Fudge cupcake and Key Lime Pie cupcake. With everything else being equal (ie. price and how each cupcake is displayed), Sam has a very simple choice to make. In his mind, whether he knows it or not, he is forming the basis for a rational decision. He is assigning a level of utility (Read: benefit) derived from each cupcake. Only Steve knows how much he likes each type of cupcake. He comes to the conclusion that:
Utility (Double Fudge) > Utility (Key Lime Pie) > Utility (Red Velvet)
Steve is now equipped with what he needs to confidently make his order. He will have one Double Fudge cupcake, please. If you take this one step further and assume for some reason the store was sold out of Double Fudge cupcakes, Steve will still be able to resort back to his subliminal game of cupcake ranking and confidently order one Key Lime Pie cupcake, please (This is as long as he believes the benefit to be worth more than $3.99. If Steve is unwilling to make this kind of statement, he should get no cupcake).
The idea of rational decisions has been propelled through mass media in the last twenty years, beginning with the Nobel Prize in Economics being awarded to Gary Becker and climaxing in the social study known as Freakanomics (and now SuperFreakanomics!). Read either of these books (Or many others in the same vein) and you will walk away with the conclusion that the world is controlled by rational thinking. Why do we ever have problems in the world? Just choose the rational path and all will be grand.
Turns out, the world is a highly irrational place. It is the reason why Starbucks succeeds, movie theaters still exist and organic kiwis are popular. People are not robots. They do not break everything down to the most basic of economic theories. What cannot be accounted for are unquantifiable benefits derived from whatever it is that people do. How can I make this claim? Cooking, that's how.
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Case #1
Case #1
From AllRecipes.com
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Chicken Cordon Bleu II (Not to be confused with the apparently disgusting Chicken Cordon Bleu I, or The Original as I like to call it)
Part 1: Ingredients
- 6 skinless, boneless chicken breast halves
- 6 slices Swiss cheese
- 6 slices ham
- 3 tablespoons all-purpose flour
- 1 teaspoon paprika
- 6 tablespoons butter
- 1/2 cup dry white wine
- 1 teaspoon chicken bouillon granules
- 1 tablespoon cornstarch
- 1 cup heavy whipping cream
Of these ingredients most normal people would need to, at the very least, go to the store and purchase ingredients number 1, 2, 3, 7, 8.
Predicted time spent going to the store: 1 hour
Part 2: Cooking
- Pound chicken breasts if they are too thick. Place a cheese and ham slice on each breast within 1/2 inch of the edges. Fold the edges of the chicken over the filling, and secure with toothpicks. Mix the flour and paprika in a small bowl, and coat the chicken pieces.
- Heat the butter in a large skillet over medium-high heat, and cook the chicken until browned on all sides. Add the wine and bouillon. Reduce heat to low, cover, and simmer for 30 minutes, until chicken is no longer pink and juices run clear.
- Remove the toothpicks, and transfer the breasts to a warm platter. Blend the cornstarch with the cream in a small bowl, and whisk slowly into the skillet. Cook, stirring until thickened, and pour over the chicken. Serve warm.
Predicted time spent preparing and cooking: 1 hour
Part 3: Eating
Predicted time spent eating (Including good conversation over a nice paired wine): 45 minutes
Part 4: Cleaning
Predicted time spent cleaning: 30 minutes
Final breakdown:
Time spent working - 2.5 hours
Cost - approximately $5.32 per plate depending on quality of ingredient involved (and yes I completely made this number up, but it seems like I calculated it because it doesn't end in a round number. I've said too much)
Time spent enjoying - .75 hours
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Case #2
From a local French restaurant:
Part 1: Ingredients
Most likely better than what was used in Case #1
Predicted time spent gathering ingredients: 0 minutes
Part 2: Cooking
Most likely prepared in a more professional manner than in Case #1 (Unless you studied at Le Cordon Bleu a la Julia Child)
Predicted time spent cooking: 0 minutes
Part 3: EatingPredicted time spent eating (Or more appropriately, time spent at the restaurant): 2 hours
Part 4: Cleaning
Predicted time spent cleaning: 0 minutes
Final breakdown:
Time spent working - 0 minutes (You might include time spent waiting, but with good company who minds a wait?)
Cost - $14.99 per plate (As much as $40.00, as little as $9.99 depending on the restaurant)
Time spent enjoying - 2 hours
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And now, some math! For the meal at home, on a pure cost benefit basis, each hour of enjoyment costs just over $7. For the meal out, it is going to be around $10 with taxes and gratuity. With this as our only measure, the person who cooks is making the rational decision. It costs less in dollars per hour of enjoyment to stay home.
This is not the only element to consider. Time spent working has to be included. The time spent preparing, cleaning, cooking is worth something. Granted, there might not be a alternative which would provide income (This would be if you were giving up an hourly wage to prepare dinner), but for a simple comparison, look at what the person who is cooking at home is proclaiming there time to be worth. If it is assumed that everything else is equal, and it has been shown that dinner at home is $3 less per hour of enjoyment, then it can be said that the person cooking values their time at $1.20 an hour ($3 benefit over going out/ 2.5 hours spent working). I don't know about you, but I think my time is worth more than that.
