Any good that is “consumed” is in a state that has resale value of $0. If the ET game company made 35 billion it wouldn’t have guaranteed that the product actually had any use value just that some people are willing to receive it by buying with that cash.
If I save 3 lifes and get $100 in compensation does that mean that a life is $33 in value? Human lives seem like they would have value outside of their exchanged value.
If there was a homo economicus that could choose between spending a day chopping down trees to get $1000 or spend a day saving 3 people and getting $100 the result would be that trees would get chopped and people would be left to die. This would to many seem like a tragic allocation of world affecting power. In order to compare whether market prices line up with our utility function satisfaction we need to be able to model the situation where the prices are not aligned. if one is able to recast the options in utilons that might resolve the problem. But then a strategy being homo economicus efficient doesn’t tell whether the strategy is aligned with a value profile or not.
Doing service and getting paid well for it is a hint that it might not be totally frivolous but it is not staighforward to define that value via exchange. If somebody would do the same thing a google engineer did and didn’t get any compensation for it it woud be just as valuable. Or a piece of code written as freeware or as proprietary software has comparble use value regardless of the cost associated with aquiring it.
If I pay you 100$ for saving 3 lifes, it means I value these lifes at at least 100$. The payment is not equal to the value, it is a lower bound estimate. Granted, I could make a mistake and spend these money on a cure that didn’t work, or on a game I didn’t enjoy. Then I would give away more than I got in return. But if we’re talking about an established company that sells the same goods or services over and over again, people are going to learn what these goods or services are worth and stop making such mistakes.
Any good that is “consumed” is in a state that has resale value of $0. If the ET game company made 35 billion it wouldn’t have guaranteed that the product actually had any use value just that some people are willing to receive it by buying with that cash.
If I save 3 lifes and get $100 in compensation does that mean that a life is $33 in value? Human lives seem like they would have value outside of their exchanged value.
If there was a homo economicus that could choose between spending a day chopping down trees to get $1000 or spend a day saving 3 people and getting $100 the result would be that trees would get chopped and people would be left to die. This would to many seem like a tragic allocation of world affecting power. In order to compare whether market prices line up with our utility function satisfaction we need to be able to model the situation where the prices are not aligned. if one is able to recast the options in utilons that might resolve the problem. But then a strategy being homo economicus efficient doesn’t tell whether the strategy is aligned with a value profile or not.
Doing service and getting paid well for it is a hint that it might not be totally frivolous but it is not staighforward to define that value via exchange. If somebody would do the same thing a google engineer did and didn’t get any compensation for it it woud be just as valuable. Or a piece of code written as freeware or as proprietary software has comparble use value regardless of the cost associated with aquiring it.
If I pay you 100$ for saving 3 lifes, it means I value these lifes at at least 100$. The payment is not equal to the value, it is a lower bound estimate. Granted, I could make a mistake and spend these money on a cure that didn’t work, or on a game I didn’t enjoy. Then I would give away more than I got in return. But if we’re talking about an established company that sells the same goods or services over and over again, people are going to learn what these goods or services are worth and stop making such mistakes.