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Wurzelnomics: Don’t tell I, tell ’ee. - Wemyss's Appalling Hobby:
From the Party Guilty of Committing 'Gate of Ivory, Gate of Horn'
Wurzelnomics: Don’t tell I, tell ’ee.


Assume Adge.  Adge lives and farms a rather small holding in Somerset, lives squalidly (largely in the kitchen, a ‘proper disgrace’ reeking of rabbit stew), and pours most of his income down his gullet down the local, in the form of scrumpy, occasionally varied with a pint or eight of lager and lime.


Adge has bought a brand new combine harvester.  His limited acreage does not justify the expenditure, as amortised over the life of the equipment, and even taking into account any improvements in yield from the land that are attributable to the new machine.


Under what circumstances can the purchase of a new combine harvester have been a rational economic move for Adge?


Assume Mabel.  Mabel, when able, gets bladdered with Adge down the pub and, when time is called, retires with him to the green near the duck pond to ‘play old Nature’s game’ – usually ending in a drunken ducking in the pond.


Mabel owns slightly more than twice the acreage possessed of Adge.  Despite their warm relations, she has shown no signs of wishing to marry Adge.  However, if Adge secures her hand – and land – the combine harvester will be not only a profitable investment, but an economic necessity.  Moreover, the possession of a new combine harvester may persuade Mabel to marry Adge.  Under these circumstances, even a risk-averse farmer may rationally choose to make a speculative investment in a new combine harvester.  Adge’s rational calculation is simple: the factors being the acquisition cost of the combine harvester; its resale value if Mabel rejects him; the interim costs of operation (less the fixed overhead cost of his current system); the probability that Mabel will now accept his suit based on his possession of a brand new combine harvester and his willingness to give her the key thereto; and the simple fact that Adge has twenty acres and Mabel has forty-three.  (It is assumed that Adge cannot, if disappointed of his hopes, simply sell up and become an Eddie Stobart driver.)


Review the source material and discuss.




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2 comments or Leave a comment
noeon From: noeon Date: February 6th, 2010 05:03 pm (UTC) (Link)
What happens to the duckpond ecology, specifically the newts, if they do seal the pact over the harvester?
wemyss From: wemyss Date: February 6th, 2010 06:30 pm (UTC) (Link)

Doan ask I, ask 'ee.

I'm far too delicately-minded to enquire.
2 comments or Leave a comment