Wednesday, August 30, 2006

A note on diminishing marginal returns

From Lewellen, "The Cost of Capital":

The second million, while still worth having, is not quite as valuable to him as the first million, since the latter has already provided him with most of the material satsfactions he wanted out of life. Three summer homes do not really generate half again the happiness of two."

It should be called the "Three summer house rule" and take its place in the legal pantheon along side the "Three pony rule."

3 Comments:

Blogger Nell said...

But what about two summer homes, a bungaloe in Figi, two ski lodges and an expansive villa to house your massive art collection... I will only be happy if I have all those things and not a second sooner.

Oh yah, and 5 Pan Flutes (for our band, Pan Fluticious)

7:01 PM  
Blogger Arfanser said...

I dont want a third summer house, I want one bigger summer house. That will give me more happiness than 1/2 again as much happiness. As my house gets bigger I get happier and happier until my house consumes the universe and I am infinitely happy.

6:49 AM  
Blogger Xeno said...

Money doesn't buy happiness. But it does buy a 30' yacht and you can sail right up beside it.

7:35 PM  

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