Follow-up thought 1: This model implies that frugality is budget-dependent. A trader at a hedge fund is much less constrained by $500 weekend plans. In fact, thinking about this model might make the trader seem less frugal, as she wantonly cancels expensive trips. I’m tempted to say this means I should be paid more (Hi, boss! 😛) but I actually think it’s income-neutral, and mostly about my budgeting.
Follow-up thought 1: This model implies that frugality is budget-dependent. A trader at a hedge fund is much less constrained by $500 weekend plans. In fact, thinking about this model might make the trader seem less frugal, as she wantonly cancels expensive trips. I’m tempted to say this means I should be paid more (Hi, boss! 😛) but I actually think it’s income-neutral, and mostly about my budgeting.