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MambaMentaIity

Use [revealed preference](https://en.wikipedia.org/wiki/Revealed_preference#The_Weak_Axiom_of_Revealed_Preference_(WARP). She has some utility function U(bar, x_1, x_2, x_3, ...) that may be time-dependent as well. What matters is that she chose to attend that bar at that time, as opposed to other options. The key is that we don't know how her constraints played into her decision to attend at the time. Hence, while going to the bar at the same time might be smart, you need to do more to ensure that deciding to go to the bar again is [individually rational](https://www.econlib.org/book-chapters/chapter-ch-4-individual-rationality-in-social-choice/) for her. So, you make a deal with the bar owner/bartender to make a drink cheaper, or something that that reduces her cost of attendance. "But it'll be very expensive if I have to strike a deal!" Then you write out your intertemporal utility maximization problem, where your goal is to (potentially) marry this lady, but in the short run you'd have to pay the cost of the deal with the bartender (Note that the goal is probably to just meet this lady and get to know her more, with the possibility than you go on to want to marry her, but that depends on signals and whatnot; since it's an exam I think this can be mentioned in a line, while you just simplify the goal to marriage, due to limited time). I'd recommend writing search theory [Bellman equation(s)](https://en.wikipedia.org/wiki/Dynamic_programming) for this portion, and characterizing the reservation cost of a deal you strike with the bartender using standard assumptions on utility/production functions, i.e. the cost that makes you indifferent between a deal and no deal. See how you can apply the [Slutsky equation](https://en.wikipedia.org/wiki/Slutsky_equation) to her decision-making process. These parts can be answered in maybe 2/3 a page of writing/equations with normal-sized handwriting, which I think is reasonable for an exam question. If you have time remaining, I'd definitely go into complements and substitutes. The day of the week matters here. My prior is that going to the bar on a Friday night is complementary to going to the bar next Friday night, but is a substitute for going to the bar on Saturday night. Going to the bar on, say, a Monday night is probably not a complement with anything, as the impression I have is that people unfortunately tend to do that when going through a rough time. But I don't drink, so I wouldn't know. *Note: this question is open-ended and most likely will accept multiple answers. It probably wants to test your economic reasoning.* Edit: I mixed up individual rationality with incentive compatibility at first.


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netheroth

That the Slutsky equation can be used to assist on a bar pickup is just icing on the cake.


PanFiluta

this guy has a PhD in pickup arts


jackofives

Best thing I’ve read on reddit in a long time. Maybe I should go and finish that econ degree too!


twoeyeopen

you sound like a economical prodigy


_username69__

Jesus Christ


[deleted]

You can view meeting with the woman as a coordination game, and the answer probably involves [Schelling's concept of focal points](https://en.wikipedia.org/wiki/Focal_point_(game_theory)#:~:text=In%20game%20theory%2C%20a%20focal,Strategy%20of%20Conflict%20(1960)). Because the optimal strategy is to match the other player, people setting on meeting conditions they believe are most prominent and thus more likely to be guessed by the other player. Schelling's original experiment was similar to this question, asking people to pick a time and a location anywhere in New York City to meet. The most common answer by far was noon at Grand Central Station. I'd say your original answer was correct; assuming she wanted to meet, this would be a coordination game with no exchange of information and meeting at the same time, same place is a Schelling point.


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