Re:Falsehoods Programmers Believe In
by coldtea on Friday August 04, 2023 @03:52AM
(#36996813)
You started the thread by asserting that "price is an indication of value" is correct.
I gave an counter example where someone ignorant of a thing's value (a guy who doesn't know they're selling an ultra rare stamp) sets it price to $1, wherea the market would gladly have paid 1000x times that.
You said, "It's value to you was $1".
When told it's not relevant, you said "there's no utility in saying something's value is $100 when nobody will give you $10 for it" which is about a different kind of value altogether.
While that's correct in itself, I pointed how that's not refuting my example, as my example covers exactly the reverse case: the situation where plenty would give you 10x or 1000x for what you sell at a price of $x. In other words, I gave an example where price is NOT an indication of value. That's what you had to refute.
You then backtracked to saying again: "It's value to you was $1".
In any case, value has specific meanings in economics, and neither of them is about "value to you [the seller]":
"Economic value is the measurement of the benefit derived from a good or service to an individual or a company. Economic value can also be the maximum price or amount of money that someone is willing to pay for a good or service. As a result, economic value can be higher than market value".
I gave an counter example where someone ignorant of a thing's value (a guy who doesn't know they're selling an ultra rare stamp) sets it price to $1, wherea the market would gladly have paid 1000x times that.
You said, "It's value to you was $1".
When told it's not relevant, you said "there's no utility in saying something's value is $100 when nobody will give you $10 for it" which is about a different kind of value altogether.
While that's correct in itself, I pointed how that's not refuting my example, as my example covers exactly the reverse case: the situation where plenty would give you 10x or 1000x for what you sell at a price of $x. In other words, I gave an example where price is NOT an indication of value. That's what you had to refute.
You then backtracked to saying again: "It's value to you was $1".
In any case, value has specific meanings in economics, and neither of them is about "value to you [the seller]":
"Economic value is the measurement of the benefit derived from a good or service to an individual or a company. Economic value can also be the maximum price or amount of money that someone is willing to pay for a good or service. As a result, economic value can be higher than market value".