Why is performance important in analytical research? Remember, our goal is to create generalized theories based on known assumptions. The word “performance” is the most adequate in the context of the research.
Performance is also related to productivity. In Economics, we define productivity as the quantity of output created by given input. Instead of applying this on a firm, we apply this to individuals, comparing thus the individual like an firms, with similar attributes.
In Economics, there are three components when calculating the productivity of a firm. Production, cost and revenue. What are the equivalents for an individual?
|Firm||Rational Self-Interest||Good or Services||Time, Labour, Capital|
|Individual||Rational Self-Interest||Projects, Money||Time, Energy, Mood|
An Individual’s Attributes
|Money||Good & Services|
Mood is an Independent variable. It is irregular but can be predicted.
Composing music produces something, so that means playing music is consuming the composer’s music. But playing music in a concert hall in front of thousands is producing, so each spectator consumes the music.