I developed this model many years ago, but kept it hidden because it seemed too
politically incorrect. I hope that my advanced age now exempts me from the
constraints of political correctness.
I thank Ricardo Guzmán for his abstract suggestion.
And from the Introduction:
In an episode of the sitcom Seinfeld, Elaine Benes uses a contraceptive sponge that gets taken
o? the market. She scours pharmacies in the neighborhood to stock a large
supply, but it is ?nite. So she must ?re-evaluate her whole screening process.?
Every time she dates a new man, which happens very frequently, she has to
consider a new issue: Is he ?spongeworthy?? The purpose of this article is to
quantify this concept of spongeworthiness.
When Elaine uses up a sponge, she is giving up the option to
have it available when an even better man comes along. Therefore using the
sponge amounts to exercising a real option to wait, and spongeworthiness is an
option value. It can be calculated using standard option-pricing techniques.
However, unlike the standard theory of ?nancial or many real options, there are
no complete markets and no replicating portfolios. Stochastic dynamic
programming methods must be used.
Woman Awarded $2.4 Million for Sponge A woman underwent a c-section and the doctor performing the operation left a surgical sponge inside her body. The sponge was not discovered until two weeks later and now the woman cannot have any more children...
New York Medical Malpractice Of Woman Suing Doctor Who Left Surgical Sponge In Her Head A woman is filing for medical malpractice in New York against a surgeon who mistakenly left a surgical sponge inside her brain. According to this UPI news report, 84-year-old Mary Pober?s family alleges that she is constantly at risk for serious head injuries since she lost a portion of her skull in a procedure to retrieve the forgotten sponge...
$2.5 Million Jury Verdict in Malpractice Case A jury awarded a woman $2.5 million in a medical malpractice case in which a surgeon left a sponge inside of her body during a hysterectomy. The woman was unaware of this surgical error until three years later when she began to have health problems...
Hospital Fined for Surgical Error After leaving a sponge inside a surgical patient, a hospital was fined for medical malpractice. The patient underwent an infected catheter removal when the operating physician and nurse had a miscommunication issue that led to the sponge never being removed...