Tuesday, July 05, 2005

Cost Benefit Analysis

I have noticed that my dog does something similar to cost-benefit analysis, or it seem as if he is calculating the cost. Sushi (my dog) loves the dog park. When I was working he would be taken to the park three times a week. Now that I am enjoying summer unemployment he gets to go almost everyday. I believe that he has noticed the correlation between playing at the dog park and bathing.
Before he had noticed this relationship, at the dog park he would tear apart anything in his way to get in the park. Now at the dog park gate he pauses and appears to be calculating the cost of going into the dog park. This can be explained by the Skinner (Psychologist in the 50's) or the Pavlov experiment. I wonder if this is a good story to introduce the cost-benefit analysis concept? I know I can do this and I know it will be hilarious. I can embelish with the dog getting out his calculator and figuring the MC and the Marginal Benefit.
My real question is: Are there any faults in my economics reasoning? Is there a connection between Cost-Benefit analysis and Skinner?

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