I got an invitation to give a keynote address at a conference in southern France next June. A great conference, but I had to decline, since we’ve planned a week with the extended family on the New Jersey Shore (the only week we are all available). The man who invited me said,“… southern France would not have been a bad place to spend this holiday….”
Even though we love the Jersey Shore, he’s right—the relative utility from the French week would be higher; and if the relative price were one, we’d be off to France. However, the prices aren’t equal—it would cost over $1000 extra for each of 12 people to do the French week. Too bad—we’ll stick with the New Jersey week, a sensible and still very enjoyable economic decision in the face of income, price and time-constrained optimization.
(HT to NG)