Truth in fiction: An economic interpretation of the modern novel with case studies of lolita, a bend in the river, and the house of mirth

Abstract

Economic analysis offers a powerful tool for analyzing fictional works. In turn, fiction can vividly illustrate the truths of economics. As others have recognized, literature can help introduce students to economic ideas in a non-mathematical way. Yet current empirical research consists primarily of interpreting literary passages deliberately chosen to illustrate particular economic concepts. I suggest that, by adopting the literary community's methodology of dissecting entire works and by analyzing novels considered great for reasons unrelated to economics, economists can reach an even wider audience. Here, I use three classic novels - Lolita, A Bend in the River, and The House of Mirth - to illuminate concepts in game theory, dynamic modeling and Schumpeterian competition, and optimization within informal markets.

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