The Game Theory of The Bachelor Pad

Game theory is all around us, especially in reality television. The field of game theory “attempts to mathematically capture behavior in strategic situations, or games, in which an individual’s success in making choices depends on the choices of others.” Don’t believe me? Just watch the ending of The Bachelor Pad.

thebachelorpadabc 300x225 The Game Theory of The Bachelor PadI caught the finale of The Bachelor Pad (billed as the “The sexiest participants from the hugely successful “Bachelor” franchise reunite under one roof in a competitive reality series to compete for $250,000″) at a friend’s place. First of all, I am a little glad that there were no pretense of “finding the one for me” a la The Bachelor.

Secondly, since I’ve never seen an episode before this, I got to miss all the drama and instead focus on the neat little game theory twist the producers introduced at the end:  The winners, Dave and Natalie, are awarded $250,000 to share. But wait, how much they ultimately get depends on their choice and the choice of the other winner.

Imagine if you are Dave or Natalie, you have two choices – to “keep” or to “share”.  Without discussing the issue with your co-winner, you must decide whether to:

“Keep” the money for yourself or “Share” the money with the Other Winner.

What to do?

You: Keep the money

You: Share the money

Other Winner: Keep the money

You get $0. Other Winner gets $0. (the money goes to the losing contestants)

You get $0. Other Winner gets $250,000.

Other Winner: Share the money

You get $250,000. Other Winner gets $0

You get $125,000. Other Winner gets $125,000.

As the matrix shows, if you select Keep, you have a 50% chance of getting nothing and a 50% chance of getting $250,000. If you select Share, you have a 50% of getting nothing and a 50% of getting $125,000.

Now, the mathematically smart thing to do here (if you have no knowledge of the other person’s character) is to always select “Keep,” because you are maximizing your chance to get the most money.  But if both people though the same way, then neither of them will get any money.  So it boils down to the assumption: do you think the other winner will Share or Keep? If there is no trust between the two person, then you have nothing to lose by selecting “Keep.”

Still, there seems to be something unsavory about selecting the “Keep” – and besides, if both winners selected Keep, then the audience can say good riddance because then they both would have ended up with $0. But the losing contestants would have been very happy!

Dave and Natalie decided to share in the money. But can you imagine the fury that would erupt if one person selected Keep while the other one selected Share? Game theory – love it!

If you were Dave or Natalie on The Bachelor Pad, what would you choose: Keep or Share?

Lessons From Real Estate Intervention’s Tough Love for Homeowners

real estate intervention 300x116 Lessons From Real Estate Interventions Tough Love for Homeowners

Ever since I discovered that I can watch HGTV shows for free on hulu.com, I’ve been a big fan of Real Estate Intervention. On this show, real estate agent Mike Aubrey has the unenviable job of telling homeowners that their house is not worth what they thought it was worth.

But a tough market calls for tough love. Real Estate Intervention gives prospective buyers very good information on what to do and what not to do when it comes to buying, renovating, and selling a home. Here are some lessons I’ll be taking from Mike‘s advice on the show when I purchase my first home (not for a while!):

  • Beware of unconventional financing structures. So many homeowners have taken out 100% financing, so that when the real estate downturn occurred they have no equity to ride out the storm. One lady took out a negative amortization loan in which her monthly payments don’t cover her interest, so that every month a little bit of principal is added to the loan. Instead of paying down the loan, or only paying interest, she is actually INCREASING her loan amount as time goes on. *blinks*
  • The market doesn’t care how much you paid for the house or how much you need to sell it for to break even. Buyers can’t price their homes based on what they need; worth is a measure of what the market will bear. Sellers aren’t stupid – they won’t buy a home for $300K if the place next door is selling for $240K and the size and features are comparable.
  • What a majority of buyers want are very formulaic: neutral walls, hardwood floors, updated kitchens with stainless steel appliances, double vanities in master baths, adequate closet space. If you are renovating and you want to make back part of your renovation dollars when you sell the house, invest in kitchens and bathrooms, and remember not to personalize too much! Bright blue tile walls in the shower might be an attractive look to you, but most buyers want neutral colors.
  • Appropriate pricing is important. In a declining real estate market, sellers need to set the market by listing the house at the correct price from the get-go, not chase the market by setting the price too high, then let the home languish on the market for months, then do periodic price cuts.

I’d suggest current and future home buyers to watch Real Estate Intervention for a good dose of perspective. Most of the homes they profile are concentrated in the D.C., Virginia, Maryland area. I’d love it if the show broadened it’s geographic reach and came to California!

Let’s Talk About Weddings

Jim and Pam’s wedding, of course!

jim and pam wedding Lets Talk About Weddings

I thought Thursdy’s episode was pretty close to perfect. And the way that Jim and Pam looks at each other? Just, wow. I don’t think two people has portrayed a modern, healthy relationship that’s full of quirks and love and support so well. I know these are fictional characters, and yet I don’t think I’ve ever been as excited about a wedding as I was for the marriage ceremony of Ms. Beesley to Mr. Halpert.

Jim’s speech to Pam at the rehearsal dinner was also just perfect (except for that little slip to grandma, oops!):

Four years ago, I was just a guy, who had a crush on a girl, who had a boyfriend and I had to do the hardest thing that I ever had to do, which was just to wait. For a really long time, that’s all I had; just little moments with a girl, who saw me as a friend and a lot of people told me I was crazy to wait this long for a date with a girl who I worked with. But I think, even then, I knew I was waiting for my wife.

10 thoughts on More To Love

I caught the first episode of the new FOX reality dating show More To Love last night. It appears that thanks to Hulu, I can find ways to unproductively use my time even without a TV in my home (see Exhibit A: Momma’s Boys).

After watching the premiere (full episode here), here are my thoughts.

1. It’s unnecessary to list each woman’s height and weight below her name. I doubt that many women (whether they are a 6 or a 16) would want their personal information to be put on TV for the world to see.

2. Luke seems like a nice-enough guy, but 20 cute ladies + 1 single man basking in their attention = the balance of power is dangerously off.

3. The first girl out of the limo, Malissa, looked gorgeous in a deep cut blue sheath. And she’s studied abroad in Paris. Forget Luke, I’m a little smitten myself.

4. The rings. Oh my. The rings that signify “Luke’s promise to get to know each of the woman for who they really are”. Call me old-fashioned, but I thought there were engagement rings (i.e. you are engaged to be married), and maybe promise rings (i.e. you are making a promise to get engaged in the future). What do these rings represent then? Although… this can be a new marketing opportunity for jewelers: “A Promise To Get to Know You” ring, anyone?

5. The script about the rings. Luke: “Will you wear this ring?” Lady: “I will!” Luke said, “the future Mrs. Conley might be in this room.” I get it .There’s no need to knock us over the head with the obvious SYMBOLISM of the ring ceremony.

6. The giving back of the rings and the regiving of the rings. It’s mean for the ladies to have to give back their rings, then wait for it to be re-given. I prefer Bachelorette’s rose ceremony. At least the Bachelor ladies aren’t handed out a rose only to have to give them back.

7. The rocket scientist who kept apologizing to Luke about her rocket scientist job. I was bummed she was sent home (I hope it’s not because Luke was intimidated by her). But I hope she knows that she should never apologize for her intelligence. A man who “loves you for who you truly are” will be proud and supportive of your accomplishments.

8. It makes me sad to hear a girl say that this show is her ONE chance at love, or something along those lines. That’s a lot of stock to put in a guy you’ve met once (and has 19 other girls competing for him).

9. Reality dating shows remind me of group interviews, except a thousand times worse.

In a group interview, an applicant wears a suit and heels and tries to both play nice with fellow candidates and stand out from the crowd to attract the attention of the hiring manager.

In a reality dating show, a participant wears a party dress and tries to both play nice with fellow contestants and stand out from the crowd to attract the attention of the hiring manager man of the moment.

In a group interview, your prize will be the job you wanted. In a reality dating show, your prize is a relationship that past experience has shown will last a month after the show wraps up filiming (to be fair, except for Trista and Ryan).

10. I’d really like to see reality dating shows discuss the issues of money in relationships. But I guess that’s too boring of a topic for TV. But putting a bunch of people in a fancy mansion with no worries about money doesn’t quite seem like a ”realistic” way to begin a relationship.

Have anyone seen More To Love? What are your thoughts?

Question: How to use your time unproductively

Answer: Watch Momma’s Boys

Whatever happened to good old-fashioned boy meets girl?

Oh well. Back to studying adverbial modifiers for me!

P.S. I went to the gym for 30 minutes today! Originally I was aiming for 20 minutes, but then a good song came on and I was inspired to jog for a bit more. Now if only I can get my studying motivation…

What Sex And The City Taught Me About Love, Life, and Money

Sex And The City: The Movie is coming out in May! I am so, so excited, and I’m betting that many Sex And The City feel the same way. Carrie, Samantha, Charlotte, and Miranda – you ladies have been missed! (By the way, I love the photo below – head-to-toe black is always NYC chic, but don’t the Sex and the City foursome look gorgeous in color?)

sexandthecity What Sex And The City Taught Me About Love, Life, and Money

It’d be hard to pin down my favorite moments of this show about the four ladies of New York city… but I’ll try! And all those hours of watching Sex And The City in my dorm room with my girlfriends were not a complete waste of time, as I’ve garnered quite a few nuggets of wisdom on love, life, and money from this show.

My favorite Sex And The City moments & lessons:

1. When Carrie realizes that she’s spent $40,000 on shoes but could not secure a loan on her own to buy out her share of the co-op after she breaks up with Aidan.

Personal finance lesson for the gals – don’t become the Old Lady Who Lived in a Shoe. Manolos can’t fund a retirement.

2.  When Carrie tells off Big at the top of her stairs right before she leaves for Paris to meet Aleksandr Petrovsky.

Love lesson for the guys – don’t take her for granted and don’t play stupid games! One day a famous Russian artist just might come and sweep her away to Europe.

3. When Charlotte tearfully tells Harry that she loves him at the Jewish get-together. She’s okay with not getting married (and for Charlotte – that’s really love when she’s willing to take marriage off the table, even temporarily) as long as they get back together. And Harry says no. And you see Charlotte’s face fall. And then he gets on one knee…

Love-life-lesson: Trust in God’s plan and have patience. And when it happens, it’ll be amazing no matter what.

4. When Samantha gave up her hair appointment to Miranda and offered to babysit Brady.

Friend lesson: The best present isn’t about money. It’s about time and understanding.

5. When Trey shows up at the last minute to Charlotte’s Home and Garden photo-shoot, even though they were on the verge of separation.

Money-life lesson: Money can’t buy you love (unless you define love to be a Park Avenue classic 6, in which case, money does buy you love!).

What were your favorite Sex And The City moments & lessons?

image source: HBO.com

I Know What I Want

This is what I am going to get tomorrow night.

There will be no rest until this mission has been accomplished.

P.S. Check out hulu. GO! Delay not one second… you will thank me for it. Promise.

(Can you say… Doogie Howser?! and Remington Steele?!)