Economic yoyos and never‐perfect value systems

Abstract

PurposeThis paper aims to look at the economic concepts of consumption preferences and merit goods and the well constructed examples: The Lazy Rotten Kids, The Nightlight Controversial, and The Prodigal Son, in the light of a recent systemic model, named yoyo model.Design/methodology/approachWith the systemic yoyo model and its methodology used as the road‐map, the traditional calculus‐based methods are employed.FindingsFrom the angle of whole systemic evolution, an astonishing theorem is established, named the Theorem of Never‐Perfect Value Systems. It states that, no matter how a value system is introduced and reinforced, the system will never be perfect. Also, it is shown that, when a tender loving parent exists, his selfish child would take advantage of the parent by putting as little effort into his work as possible.Originality/valueWith recent development of systems research as the foundation, two brand new insights into household economics were discovered.