Thursday, May 21, 2009

The opportunity cost was getting too steep

"Need" is not a hugely useful word economically speaking. Last fall, my microeconomics teacher demonstrated this by asking us how many of us wanted an A in the class. Everyone's hand shot up. "How many of you need an A in the class?" A few hands fell. He followed that up with, "How many of you need an A in the class if it takes 10 hours of studying each week?" A few more hands fell. "15?" "20?" "40?" "80?" It didn't take long for all of us to realize we actually didn't need an A.

For everything, there is a substitute. A "B" is a perfectly good substitute for an A, if you judge that the opportunity cost of getting the A is too high. Making decisions is about weighing the marginal costs and benefits.

Last week, the author of one of my favorite blogs to follow - 22 Words - asked whether we have reached the point in this culture where it is considered irresponsible, or even negligent, to not have a cell phone. I was very interested to read the comments on this post, and even commented myself. A few of the responses really caught my attention. One woman wrote, "It really depends on your lifestyle. For us they are indispensable and always have been." Indispensable? Really? What if your cell phone cost you $100 a month? $200? $300? Similarly, "I realized, on my way to work this morning, that I had forgotten my cell phone. I feel extremely disconnected. I kept thinking, 'what if someone NEEDS to get a hold of me? I won't be available for a short time.'" Oh dear.

All that being said, I have decided that the marginal benefits of having a cell phone this summer outweigh the marginal costs. Today my Virgin Mobile cell phone came in the mail. For no activation fee and no cancellation fee, I can pay a set rate for a 200 minutes each month that roll over, if there should happen to be any left. Clearly this isn't a plan for long conversations with friends and family. Skype is for that. Much as I'll be glad to have a way to contact people and be contacted, I have some strange trepidation. I like my independence.

Some of my friends are so glad that I'll have a phone you'd think it was more of an inconvenience to them instead of me that I didn't have one.

4 comments:

Nancy Morris said...

Carol - You can always do what I do; leave it off when you don't want to make calls/be interupted/want some quiet. I feel no need to be constantly in touch; and there are few emergencies that can't be handled by regular phone!

Sarah said...

It *is* more of an inconvenience to your friends than it is to you. We all have cell phones, so you can get ahold of us whenever you need (excuse me, want) to by borrowing a cell phone or using a land line. Our default mode of getting in touch doesn't work with you, so we have to be a little more creative-- IM or call the dorm or call someone we think you're likely to be around. One of the things Meg has found most frustrating since getting her phone is the number of people who call her when she doesn't want them to, or who talk longer than she wants to. She bought the phone for her convenience and her friends are using it to inconvenience her.

Ken said...

This morning I used my cell phone to keep track of time during the sermon. Since I was preaching, I felt I should be aware of the time.

Some day they (meaning Apple, no doubt) will invent a more elegant way to quickly check the time at a glance, without drawing too much attention to oneself.

Hannah said...

I understand cell phones being necessary to some who need the immediacy of communication that cell phones provide--for instance, if your job requires frequent travel, or you work in some industry where that kind of quick response is essential. My family actually bought our first cell phone when my mom was unemployed and it was important that she answer any job-related calls herself and quickly.

Myself, I live in and traverse areas that are pretty safe and I'm content to do without the convenience of a cell phone. Generally, I've found that it means I must wait a little longer to plan something, or get ahold of people and it's thus harder to do spontaneous things, but I'm used to this and am thus fairly content. The only times I feel it particularly sensible for me to carry a cell phone are when I take the train to Chicago by myself, or make a long-distance bike ride on my own where I'll be in the middle of nowhere. But these are pretty rare occasions, and I don't think my situation is particularly unusual.

Nothing wrong with having the convenience, I just find that "necessity" is oft an overused (and misused) word...

(Erm. After writing that novella, hello. This is Hannah. I found your blog via Facebook)