The Microeconomics of the Sexual Market Place

The Microeconomics of the Sexual Market Place

As earlier defined microeconomics in aggregate is macroeconomics. Thus, microeconomics concerns itself with the parts that make up the whole. In the sexual market place, microeconomics can be applied to individual sexual market values, local market conditions, group market conditions, or relationships to name a few.

Unlike the macroeconomic section that is more descriptive than prescriptive in nature, the microeconomics section is more focused on how a man may utilize the nature of the market in order to maximize his benefits.

When a company is founded, it can derive its financing from two sources, debt and equity. Equity being the capital that the owners have, debt being capital they borrow. A company can be fully equity financed or fully debt financed, but most tend to have a balance of the two. As the company operations keep working, they will either make money or lose money, if they lose money this will slowly devour their equity, until it is depleted, if they at that point cannot make the payments to the owners of the debt, they will be bankrupt.

If the company makes money on the other hand, that money will slowly pay off the debt, thus increasing owners' equity and increasing the value of the company. The company is free to take on more debt, and many do in order to grow at a faster rate than what their cash flows can finance themselves. This is no different from a person taking out a 20-year mortgage to pay for a house, which they slowly pay down in those 20 years and end up owning.

This is the major difference between a successful company and an unsuccessful company; a successful company will grow its value through earning returns above that of the cost of capital. An unsuccessful company will diminish in value through earnings below that of the cost of capital. The cost of capital is not just the cost of debt; it also includes the opportunity cost on the equity, most often generalized as the risk free return rate, but it may also be set at other levels. After all, if the owners are not earning an acceptable rate of return they are losing purchasing power due to the time-value of money.

Most companies have a generalized value chain that can be presented as inputs -> Process -> Output. Inputs can take many forms, from a company that buys vast areas of land, searches for resources and set up mining or drilling operations to software companies that identify areas where a piece of computer code could improve something. These resources represent a starting point for the company. The process is where the company adds value to the raw resources and thus increase their value. This could be a company that purchases raw materials (input) and turns them into finished products (outputs) using a specific methodology (process). The final step is when the company sells the outputs for a price that gives them a profit above the cost of their process, and thus realize a net profit.

For a man, he is born with a minimum of owners' equity that may grow or diminish over time. Some men are born with more equity than others are, for instance being of noble birth, or of a rich family. Some are born with less equity than other men due to the nature of their birth, such as congenital defects. Equity may also be contextual, in that a man with a fear of horses and talent for building walls will be less appreciated in a Mongol tribe, than in the Chinese Ming dynasty. While many characteristics of a man's equity is unilaterally appreciated around the world, there are contextual aspects that must be accounted for.

Throughout the life of a man in the modern world, he has many opportunities to increase his equity, just as a company can grow its equity. He may also diminish his equity. This has to do with the processes this man adopts (if any). The process determines the output and the value of the output. There are countless examples of men who despite having created massive outputs fail to realize a profit in the direction they are aiming.

Being aware of the value chain dynamics, namely your inputs, process, outputs and market is important in that those four shape the success of your company. A company may have the best raw materials but a poor process, a great process but poor raw materials, or they may have perfect inputs, a perfect process and have created a perfect output, for which there is no market.

In the Kingdom references in the section on macroeconomics, one could argue that the king has the highest sexual market value of 10, noblemen are SMV nine, powerful advisers are SMV eight, the average male is five, and those below average are 4 down to 1.

The King may have obtained his value from birth, or by his wits or force. Many great epics tell the tale of the slave who through sheer force of will and determination rose to rule a great empire. The noblemen may have been born of fortunate circumstances, alternatively, may have received their posts and their sexual market value through being supporters and allies of the king in his quest to claim his kingdom. Thus, sexual market value is the result of two things, performance and risk.

For a company to be successful it requires both risk and performance. If the company does not take risk, it will rarely maximize its value to the full potential. Yet if a company is negligent of proper risk management it will rarely survive to tell the tale. Should a company fail to perform, it is unlikely to be able to retain clients and thus profits. Furthermore, should a company fail to understand its market, its product, competitors, its circumstances or a range of other factors; it may also face its demise.

Risk can be summarized as "action in the face of uncertainty", where one acts without knowing whether the outcome will be beneficial or detrimental to one's desire. For a male in the world of today, this could be deciding to enroll in college, pursuing a career as an artist or deciding to cover himself in tattoos. Some of these are minor risks; some have possibly permanent and severe consequences.

A male can fail to perform through a fault of his own, or through no fault of his own. He could neglect his diet, his exercise routine, and his work in favor of playing video games. Alternatively, he may do everything right and find himself facing a setback from corporate layoffs, his major falling out of favor, or a tattoo needle infected with hepatitis. This is no different from how a company may fail due to a fault of their own such as neglecting developments in its own market or through no fault of their own such as a war breaking out.

In the same way a company must know its market, a man must be aware of his market. Early pick-up artists referred to this as calibrating yourself towards the type of woman you desired to attract. A man could have wrongly calibrated his market, and figure out too late that women who like men with many tattoos, often have many themselves and he is fundamentally not attracted to women covered in ink.

A company is affected by many factors external to it that it seeks to predict or reduce the impact of by engaging in risk analysis and risk management. A popular analysis model for companies is the PESTLE, which stands for Political, Economic, Social, Technological, Legal and Environmental, that seeks to identify the salient issues under each marker. For instance, a political issue may be regulations and taxation. An economic issue could be negative performance of markets and global economic depressions. A social issue exemplified could be the demographic change currently underway in the western world. A technological issue could be electric cars replacing many vehicles utilizing fossil fuels. A legal issue may be a change in regulations, tax codes or something similar. Finally, an environmental issue may be, having to account for new forms of externalities or the rapid depletion of natural resources required as production inputs.

In the same manner, a man is affected by many factors within the sexual market place. A clear analysis of the risks he faces should be the backbone of his sexual strategy so that he is aware of the dangers he faces in the sexual market place.

A company once it has analyzed its environment will engage in market analysis. The goal of market analysis prior to entering a new product area is to establish the characteristics of the market. Many tools exist to conduct such analyses, the most popular being the Porter 5 forces analysis.