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October 13, 2005

Arbitrage explained

Is it possible to use an ancient economic activity as a new social paradigm? To be honest, the concept of arbitrage is as simple as Buy Low, Sell High. If I can purchase an automobile for $10,000 in Boston, drive it to New York the same day and sell it for $12,000, that is arbitrage. Same item, different value depending on location. Although the definition specifically states securities, for our experiment we will use any item of value.

Investing (except for short-selling and some other tricks) truly boils down to Buy Low, Sell High. However, depending on how adept one is, it can require judgment and evaluation of several thousand possible data points to be successful. The same with what we will call Demographic Arbitrage.

The long and short is that under the new theory every person is a commodity, and posesses a certain innate value, based on their looks, status, intelligence, affluence, sex appeal, loyalty, and a thousand other traits along what could be an infinite spectrum. Some traits have a higher value in certain cultures and countries, and even among different demographics of the same country.

For example, while attractiveness is always a high-value trait, in Los Angeles, might not status, fame, or affluence be of more importance to women looking for a mate? And maybe in No-Man's-Land, Kentucky, everyone works at the same mill and thus the expectation of income is the same, making attractiveness the higher-value trait? In a certain hip Seattle neighborhood where everyone is well-to-do, maybe quickwittedness and charm are head-turning qualities, while working-class Poughkeepsie'ens puts stabilty on top. I don't know if any of these things are true, but they are most likely verifiable with a little effort.

Looking outside our own country, is it possible (or probable?) that other countries value systems are so different so as to be alien to us? Is it true that Asians possess loyalty in abundances that we cannot even comprehend? In a country where divorce is nearly non-existent, do they consider us merely permissive or worse, mortally dishonest because we toss aside our marriage vows 50% of the time we make them? Would that not give Asian women a high arbitrage value to those in other countries looking for stable, loyal and long-term or marriage-minded relationships?

I don't want to ramble too much tonight, so I will get back to how does all that matter to me (or anyone searching for something/one in particular) and my quest for a soulmate? Well, the basic principle is that perhaps my arbitrage value in Nashville might be near zero, and thus I might have above average difficulty in finding a long-term relationship. However, perhaps in Atlanta, Peking, Seoul or Mexico City, my value as a mate is higher than the locals due to male/female population differences, asset value, or other traits I don't even know I have (or don't). If that is true, I would possess what I will call positive arbitrage there.

I know this may all sound pretty silly to some, but if there is something to it, might there be some call for services that match people to different places based on their arbitrage value? We already regularly hear about marriage services in Eastern Europe, South America, Russia and others. Although most of the agencies are scams, there are many that are not, and they basically trade American lifestyle and immigration status to women for wifehood, for lack of a better term. Some might call it prostitution, but is it any different than what many cultures have done for millenia (and continue to do) with arranged marriages? Is it wrong, is it right? If both parties are willing, does it matter?

Just something to chew on. More this weekend.

Posted by TLorin at October 13, 2005 9:46 PM

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Comments

Okay now I thought I was smart, and I think I understand this, let me just paraphrase.

Thru all this, from what I understand is you're thinking of leaving Nashville and move somewhere else to get a better value in dating??

Or do I need coffee?

Posted by: Serira at October 14, 2005 11:23 AM

Well, if the question is, would I move in order to meet (or get to) my soulmate, the answer is probably yes. Would I move just to have better dating options? No, probably not. However, mostly it is about the theory of it all, and whether or not I have limited options at my current location because I don't have anything of value to offer the locals.

However, I am more than open to take trips to meet people or to bring them here. The next several posts on the topic should make that part of it a little clearer. There are 100's of singles sites catering to those in other parts of the country and in different countries. If the theory is true, I should be able to use sites in places where I have a higher arbitrage value and get more or better responses than I did at Match.com, for example.

And no, I don't think you need any coffee, a very reasonable reading of it.=)

Posted by: TLorin at October 14, 2005 1:45 PM

Ohhh, I totally understand now! I love when that happens.

I'm very interested in the next few topics you have about this!!

The only thing I want to say is just remember to be true to you. It’s so easy to mold yourself into something the other person wants and then both are unhappy till you figure out how to get back to being you... and you never really do.

Another side note, come and hang out on the forum once and a while ;)

Posted by: Serira Mysst at October 14, 2005 2:12 PM

What you say about being true to yourself is competely right. In the past, every time I have lost myself (ie. basically every time;) and became what the other person thought they wanted, the relationship failed, and in some cases failed dramatically.

Going into the next one, whenever that is, I will keep Montgomery Gentry in my head; they sing a great country song called "She couldn't change me' that speaks to this subject eloquently.

And ok, will do!=)

Posted by: TLorin at October 14, 2005 2:33 PM

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