For all the talk of Wolfowitz in the blogosphere, few have analyzed his romantic relationship with his partner, Shaha Riza. This event will define her reputation for the rest of her life, a'la Monica Lewinsky. But unlike Lewinsky, she was already talented at work and quite accomplished. So the tarnishing of her name seems like a real shame. Should he not have resigned quite early, over romantic "duty" to her? Presumably we are to think she has encouraged him to fight on. Shouldn't he have quit anyway? Shouldn't her (supposed) obligingness have made him quit early all the more?
But he fought long and hard.
Is there any chance they simply split up over this episode? Are there any scenarios under which this has improved their relationship? Would an early quitting have caused them to split up, or suffer several very hard years, due to the feeling of asymmetric sacrifice? How does that compare to the asymmetric sacrifices they must suffer now?
I've thought far more about these issues than all that conflict of interest stuff or whether W. was ever a good World Bank president. Does that make me crazy? Why is no one asking whether Coase Theorem applies within their relationship?