Microeconomics, Losing Weight, and Monkey Money

About a week ago I made a post describing how the Hawaii trip incentive spilled over to my boys and they became ‘encouragers’ to my wife. I wasn’t sure what the name of this unintended effect was, but I stumbled across the answer in that same SuperFreakonomics book. Economists call it a ‘positive externality’, where beneficial effects of something are shared by others who are not necessarily involved. It’s kind of the opposite of, say, having gas from that burrito you ate at lunch. You not only stink up the area for you, but also for everyone else nearby. That’s would be called a negative externality. So the moral of today’s economics lesson is to eat your burritos late in the day.

On a related note, I finished reading that book and I’d like to take a minute to thank the authors. There’s a story at the very end of the book about a researcher who was doing experiments with capuchin monkeys and money. I don’t want to spoil it for you, so let’s just say the monkeys used the money in unexpected says. When I read it I was laughing so hard tears were coming out of my eyes. It’s been a long time since I’ve laughed like that. Check it out if you ever have the chance.

Finally, a quick update on the progress of this little project. My wife has continued to be motivated a week later. Yeah, a week isn’t very long, but it beats the 2 days spent on the Martha Stewart cleansing diet. A couple trips to the rec center this week and a couple days of exercising at home by either taking walks or doing hamster exercise on the elliptical machine. So far she’s down about 3 pounds, which isn’t ‘Biggest Loser’ numbers but still a pretty good start.

You Become What You Eat – Don’t Eat Bricks

Weekend #1 has gone down in the books, and with a bit of mixed results.

On the one hand my wife and I were able to get some exercise in on Saturday. That’s good, because as just about everyone knows, but doesn’t want to admit, Weight Loss = More Exercise + Less Food.

[Side note - Those of you reading this that don't agree with me on that statement probably fall into one of three groups: lazy people who are simply in denial about the brutal truth; product endorsers who actually have fooled themselves into believing their ab machine can help you lose 10 pounds a week in only 30 seconds of exercise a day; or exercise gurus who want to make simple things sound so complicated that your only option is to pay them to figure it out for you. At some point you'll just have to come to accept that any successful diet plan follows that same formula in its own unique way. Come on back and let me know when you have.]

The mixed results part? I almost hate to admit it, but we decided to cook up a homemade nachos feast for dinner, so we could eat it while watching the Saints/Vikings game. Hey, Emeril’s recipes can’t send us wrong, can they? Well, all that pulled pork and cheese sent me to bed full and caused me to wake up in the morning feeling like I ate a brick that wouldn’t digest. On top of that the pork was from Costco, not some wonderful free range organic pork. Ick. Hawaii looks just a bit further away today, so let that be a lesson to everyone out there; stay away from foods that end up behaving in any way like bricks.

Next time, we decided, less cheese, use grilled chicken instead of pork, and end up happier in the end with less time spent in the kitchen. Sorry, Emeril. We did learn one thing from you, though. Fresh cilantro, chives, and sliced pickled cherry peppers are sure yummy on nachos! Healthy, delicious Super Bowl nachos in just 2 weeks. Brett Favre, you’re welcome to join us.

Finally (?) The Right Incentive

As Lightening McQueen (from the Disney movie) would say – ‘Ka-Chow!’ The presentation of this idea went over WAY better than expected with my wife. By the time I had gotten the offer out of my mouth she had the biggest smile on her face I’ve seen in a long time. And what a smile it is! After all, she’s missing 3 of her front teeth after trying to catch a softball with her teeth last May. (another story for perhaps another time)

Even my two oldest boys were in on the excitement, because really this incentive affects them as well. (they get to come with to Hawaii). I’m not sure exactly what economists call it, but I seem to have some kind of bystander effect I didn’t quite expect. In other words, I have two little ‘voices of encouragement’ to help my wife along.

By the end of the day my wonderful test subject had called most of her family to chat about the deal, and also had taken the dog for an hour and 40 minute walk. I’d say I might have found the right button to push. Time will tell.

The Economics of Weight Loss

Logical Self: Hey, I had this ‘a-ha’ moment last night I’d really like to share with you. I was reading the book SuperFreakonomics and had this great idea on how we can help our beautiful wife lose the weight she’s been struggling with for so long.

Frugal Self: Well, I fail to see how this affects me, and I fail to see what that book and weight loss have to do with one another, but I’m not really all that busy right now. As long as you’re not trying to get me to pay for this book, I’ll listen.

Logical Self: First, I got the book a the library, so chill out. And if you pay attention you’ll see that it actually has plenty to do with you.

Okay, so in this book the author states that their FIRST book, Freakonomics, had a unifying theme that wasn’t really spelled out out for those of us who read it but are a bit thick headed. That theme was the fact that “people respond to incentives”.

Frugal Self: Thick headed. Got it. I totally agree with that point about you. And “People respond to incentives.” Well, that seems like a no-brainer, and right now my incentive to keep listening is dwindling.

Logical Self: Yeah, I’m well aware of how short attention spans are nowadays, so I’ll get right to the point. I think our lovely wife has struggled losing weight because the incentives to do so aren’t structured properly. In fact, I don’t think the incentives of looking good and being healthier are strong enough to overcome the opposite incentives of being comfortable and eating delicious food for most people.

So here’s what I propose. We try to push the buttons that work for her. I’m going to tell her that if she can reach a healthy weight goal of 140 pounds, I’ll promise to take the entire family to Hawaii.

Frugal Self: Whoa, whoa, whoa, back the truck up! Hawaii!?! That sounds expensive. You have my full attention now, I can guarantee that. I’m with you on the idea of proper incentives helping to shape behavior, but couldn’t you just, you know, pat her on the back or give her a nice framed certificate or something?

Logical Self: Come on, tightwad, try to think logically for a minute. The incentive has to be strong enough, and of the right kind, to overcome the opposite incentives I already mentioned. Hawaii fits the bill in a way your ideas could never touch.

If you can only think of this from a cost perspective, think of it this way: the cost of a trip to Hawaii is likely much less than the cost of treating diabetes or cancer, or some other weight related disease that might pop up later in life. You’re actually saving money!

Frugal Self: Your point is well taken, but that still doesn’t explain how you’re going to pay for this bright idea, Mr. Logical.

Logical Self: Yeah, that part is kind of ironic, isn’t it? I haven’t figured that part out yet, but I think I have time to work it out.

I’m going to go propose the idea to her, so we should know shortly whether or not it looks like we have a winner…