The Economics Of Finding A Rich Husband

How did the mating market ever clear without Craigslist? The ad:

...I'm a beautiful (spectacularly beautiful) 25 year old girl. I'm articulate and classy...I'm looking to get married to a guy who makes at least half a million a year. I know how that sounds, but keep in mind that a million a year is middle class in New York City, so I don't think I'm overreaching at all.

Are there any guys who make 500K or more on this board? Any wives? Could you send me some tips? I dated a business man who makes average around 200 - 250. But that's where I seem to hit a roadblock. 250,000 won't get me to central park west.

...Jobs I should look out for? Everyone knows - lawyer, investment banker, doctor. How much do those guys really make? And where do they hang out? Where do the hedge fund guys hang out?

- How you decide marriage vs. just a girlfriend? I am looking for MARRIAGE ONLY.

A reply from an economically literate potential mate:

I read your posting with great interest and have thought meaningfully about your dilemma...Firstly, I'm not wasting your time, I qualify as a guy who fits your bill; that is I make more than $500K per year. That said here's how I see it.

Your offer, from the prospective of a guy like me, is plain and simple a cr@ppy business deal. Here's why. Cutting through all the B.S., what you suggest is a simple trade: you bring your looks to the party and I bring my money. Fine, simple. But here's the rub, your looks will fade and my money will likely continue into perpetuity...in fact, it is very likely that my income increases but it is an absolute certainty that you won't be getting any more beautiful!

So, in economic terms you are a depreciating asset and I am an earning asset. Not only are you a depreciating asset, your depreciation accelerates! Let me explain, you're 25 now and will likely stay pretty hot for the next 5 years, but less so each year. Then the fade begins in earnest. By 35 stick a fork in you!

...Separately, I was taught early in my career about efficient markets. So, I wonder why a girl as "articulate, classy and spectacularly beautiful" as you has been unable to find your sugar daddy. I find it hard to believe that if you are as gorgeous as you say you are that the $500K hasn't found you...

I love that last bit about efficient markets. Ahhh...the usefulness of economic logic never ceases to amaze.

(H.T. The Corner. Although there was some concern that the post was a hoax, it seems to have been a real posting after all).

Comments

[Gary]

Too funny. My guess is that the woman seeking the wealthy mate is also "high maintenance" - she's already admitted that she's shallow (read the original post) and along with that probably comes other negative personality traits as well, e.g. flaky, insecure, argumentative, and so on. Since peoples' personality traits tend to solidify and even intensify as the get older, this gal is most definitely an "asset" very few guys would want to own.

As to advice for this woman, if she wants a guy who makes $500K a year, she'd be better off getting out of NYC and looking for a guy who's in business for himself, maybe a plumbing contractor or metal recycling business or machine shop. But my guess is that those occupations aren't prestigious enough.

[T]

The post could still be someone trying to stir up something on Craigslist. I think some people go on rants and raves just for that and they'll post whatever is going to get a rise, whether true or not.

I don't think most women are like that (yes, I am a woman). Yeah, I've met some, but they often end up with guys like them so it leaves the rest of us people safe. Though I guess I only have a few years to worry anyway and then I've got a fork in my back and it's declared over for me! :-)

[the15th]

You might be surprised to hear this, but there are also men who post on Craigslist offering "generous" economic support in exchange for the "companionship" of a physically attractive, much younger woman. Not only that, but these ads outnumber those like the one posted by this charming young woman by about 50 to 1! It's almost like there are also some men who view relationships as an economic transaction!

[George Weinbaum]

Send this to Eugene Fama at the University of Chicago. He'll love it. I couldn't have said it any better.

[Sergio Guerra]

That why I love this game.

Thanks Prof. Borjas for such a funny and economicaly active comment.

From Caracas, Venezuela.

[Coyote99]

A "classy" woman who wants to marry for money? Seems she's mixing up the word "class" with the word "crass."

[psb]

I don't know why everyone is getting on her case. She just wanted a straight answer to a simple question, and rather than spending paragraphs qualifying her question and trying to demonstrate her credentials as a "normal" person in the dating market, she spared us the trouble of having to read through that and didn't bother. Does anyone deny that looks and wealth are a very large factor in the dating game? If someone makes an offhand comment on the effect of wages on employment, do we automatically disregard it as being unworthy of consideration if it doesn't also address in some way the host of other facts that might influence employment? Cut the girl some slack. She was just curious about something that, hell, I'd like to know the answer to as well, and people just through it would be much more fun to be mean to her than think through some uncomfortable ideas. And in any case, this is Craigslist, which is exactly the appropriate type of forum for these types of queries.

[bjk]

Use of the word "classy" is always a tip-off.

[Ali]

She'd probably do better going into one of those fields herself. Looks are an edge in employment as well, as long as she doesn't look like a dumb blonde.

[Peter Schaeffer]

I think the male responder has failed to appreciate the value of the young lady’s proposition. In addition to her current charms, she can (presumably) produce profitable spinoffs for years to come. Indeed, even at age 35 she will probably be capable of creating new assets on behalf of her potential male companion.

That point not withstanding, the young lady’s grasp of economics is not all that bad. Given that she is a depreciating asset with declining yields (aside from spinoffs), of course she should seek marriage now when her is PV is at its peak.

Indeed, the male responder faces somewhat similar economics. Based on optimal ages theory (F = M/2 + 7 or M = 2F - 14), he can be assumed to be 36. In 10 years time, he will be 46 and well past his peak value. His cash income may have increased, but he will still be worth less in the marriage market.

Stated differently, the female has a high current non-cash yield with a expectation of decline over time. The male’s current non-cash yield is probably lower but will also decline over time. His cash yield will peak between 45 and 54 (according to the BLS) and then decline. It makes sense for the female to trade her peak current PV for the combination of cash and non-cash PVs the male can offer as part of a long-term contract.

Indeed, marriage has historically been called a contract and frequently been a legally binding contract in many different places and times. The above economics provide part of the explanation for why such social arrangements have been so common.

[archer]

The amusing thing here is how both the woman and the man (at least by following the woman's lead) see a woman's main asset as her looks (witnessed by wealthy men trading in their wives for younger models).

Women who have succeeded in marrying serially to rich men (think Mercedes Bass or Pamela Harriman) often weren't terribly attractive. Mercedes is reportedly incredibly fun and can captivate a room full of people; Pamela Harriman was enormously attentive to her men and was rumored to be highly skilled in what we will euphemistically call the romantic arts. And it goes without saying that all wives at this level do a spectacular job at running a household and entertaining.

[AYANNA]

I AM 22YRS OLD AND LOOKING FOR SOMEWHAT OF WHAT THE POSTER IS ASKING FOR WITH A FEW EXCEPTIONS. I WANT A WEALTHY MAN TO PROVIDE AND ASSIST ME BUT I AM A REALIST AS WELL I DONT EXPECT SOMETHING FOR NOTHING. I FEEL WHY SHOULD I GET INVOLVED WITH SOMEONE WHO IS NOT IN THE POSITION TO TEACH ME NEW THINGS AS WELL AS BE ABLE TO EXPERINECE LIFE WITH ME THE WAY I WANT TO EXPERINECE LIFE. I AM A VIRGIN WHOES NEVER BEEN IN A RELATIONSHIP HAS ONLY DATED AND I HAVE TO SAY WHATS OUT THERE IN GENERAL ISNT GREAT IF IM GOING TO SETTLE I'D RATHER SETTLE FOR MILLIONNS OR THOUSANDS. THIS ARRANGEMENT IS LOGICAL IF IM TO BE INVOLVED WITH SOMEONE WHY NOT HAVE THAT SECURITY FROM THEM. I AM ATTENDING SCHOOL, ATTRACTIVE, INNTELLIGENT AND STILL GROWING AND WANTING TO IMPROVE EVERYDAY. ONCE AGAIN I ASK FOR SOMEONE WHO CAN IMPROVE MY LIFE BY HIS WEALTH ISNT REALLY TOO MUCH TO ASK FOR ESPECIALLY IF THE MAN IS WILLING .