Re:Britain’s statisticians fix a blunder and find a bigger e...
by rz2k on Tuesday September 05, 2023 @03:06PM
(#37396277)
The revealed preferences in this story reveal that for these two individuals there is at least $100 of value in viewing this spectacle, and less than $100 distaste in performing this spectacle. Sadly GDP does not measure how much surplus value was created by these two transactions, given that maximizing utility is a better normative goal than maximizing GDP, but GDP did indeed increase by $200 and it is accurate in indicating that at least total utility was increased (less unaccounted for externalities like unfertilized trees or whatever).
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Re:Britain’s statisticians fix a blunder and find a bigger e...
by jjoonathan on Tuesday September 05, 2023 @03:24PM
(#37396510)
> value
In this case we have two approximately equal economists, but in general any discussion about revealed preferences, utility, and value is remiss without a parallel discussion on how value is wealth-weighted. Feeding a starving orphan creates 0 economic value because the orphan has no money, but figuring out how to merge companies into a monopoly creates extreme amounts of economic value by way of making rich investors even richer.