By changing x and y, we represent your altruism to the other parties in the situation; if x is greater than 1, then you would rather give the commune money than have it yourself,
Small correction: you want to buy the widget as long as x > 7⁄8 .
You should also almost never expect x>1, because that means you should immediately spend your money on that cause until x becomes 1 or you run out of credit. x=1 means that something is the best marginal way to allocate money that you know of right now.
I think we’re using margins differently. Yes, you shouldn’t expect situations with x>1 to be durable, but you should expect x>1 before every charitable donation that you make. Otherwise you wouldn’t make the donation! And so x=1 is the ‘money in the bank’ valuation, instead of the upper bound.
Small correction: you want to buy the widget as long as x > 7⁄8 .
You should also almost never expect x>1, because that means you should immediately spend your money on that cause until x becomes 1 or you run out of credit. x=1 means that something is the best marginal way to allocate money that you know of right now.
I think we’re using margins differently. Yes, you shouldn’t expect situations with x>1 to be durable, but you should expect x>1 before every charitable donation that you make. Otherwise you wouldn’t make the donation! And so x=1 is the ‘money in the bank’ valuation, instead of the upper bound.