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But the world is not ideal and going about searching through people is very costly.
So online dating has actually provided a boon to the market, or at least from my perspective I think of it that way.
Download this podcast SARAH GREEN: Welcome to the HBR Idea Cast. I’m talking today with Paul Oyer, Professor of Economics at Stanford’s Graduate School of Business. SARAH GREEN: So Paul, I’d like to just kick off by talking a little bit about the economic concept of search costs.
He’s the author of the book, Everything I Ever Needed to Know About Economics I Learned from Online Dating. Can you just maybe describe what the concept is and how you’ve applied it to this idea of looking for a life partner?
And if I want to buy a new house and I go from open house to open house, I could be doing other things.
However, we invest in those search costs because it’s worth it, because we get something we really want.
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Shopping for a house and shopping for, that’s terrible terminology, but trying to find the right life partner are very similar in the one sense where each one is different.