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knb comments on Open thread, August 19-25, 2013 - Less Wrong Discussion
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Wow someone else thought of doing this too!
My roommate and I started doing this a year ago. It went pretty well for the first few months. Then our neighbor heard about how much we were paying eachother for chores and started outbidding us.
This is one of the features of this policy, actually- you can use this as a natural measure of what tasks you should outsource. If a maid would cost $20 to clean the apartment, and you and your roommates all want at least $50 to do it, then the efficient thing to do is to hire a maid.
The problem could be that they actually are willing to do it for $10, but it's a low-status thing to admit.
If we both lived in the same appartment, and we both pretended that our time is precious that we are only willing to clean the appartment for $1000... and I do it 50% of the time, and you do it 50% of the time, at the end none of us gets poor despite the unrealistic prices, because each of us gets all the money back.
Now when the third person comes and cares about money more than about status (which is easier for them, because they don't live in the same appartment with us), our pretending is exposed and we become either more honest or poor.