Friday, January 23, 2009

Woman Auctions Off Her Virginity

This is off the usual Financial Rounds fare, but sometimes I can't resist. First here's the article:
They say you should value having sex for the first time. That’s why I’m auctioning my virginity online—and the bidding is up to $3.8 million.

When I put my virginity up for auction in September, it was in part a sociological experiment—I wanted to study the public's response. Now it seems that the tables have turned, and the public is studying me.

You can read the whole thing here. Since i just had my third cup of coffee, a few random neurons started firing, and a few random thoughts popped out (my good friends would argue that "random" describe most of my thoughts). I realize that some of them are a bit finance-geekish, but if you don't like them, you're welcome to start your own blog:

  1. Wasn't there a punchline going something like ",,, now we're just haggling over terms", and a movie about this?
  2. I don't think I'll show this to the Unknown Daughter. I read somewhere that a dad's first obligation to his daughters is to keep her off the "stripper's pole". Hey dad - you failed.
  3. For some reason, I'm thinking about the issuance of overvalued securities.
  4. There are probably some good applications of behavioral finance and auction theory here. However, I'm not going there.
  5. Clientele effects are not just for dividends
  6. "Hot" vs. "cold" issue markets
  7. There's a moral-hazard spin in here somewhere
Finally, what would happen if someone won the auction and purchased the right, but decided not to exercise it? Would that mean that the lady in question would have to remain celibate? If so, there's a real contracting problem (with severe agency problems) and a real need for post-transaction audits.

That's all I have for now. Feel free to add your comments. But remember, this is a (mostly) family-friendly and safe-for-work blog.