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Imagine that after each transaction, the measure of total wealth is normalized to have the original total. Whether or not actual wealth is increasing or decreas
by msellout 11y ago
Imagine that after each transaction, the measure of total wealth is normalized to have the original total. Whether or not actual wealth is increasing or decreasing, Norvig's simulation of nominal wealth will have the same dynamics.
- nickff 11y agoHow would you describe the value of being able to spend time with your children vs. being stuck far from your family? This is a trade parties could make, and could result in a Pareto improvement (e.g. if someone with no family traded jobs with someone who had children they loved).
- msellout 11y agoOne can generally convert all things to dollars. There's generally a price you can offer to convince someone to do most things, such as your example of spending time away from family. Sure, money can't buy happiness, humans are weird about non-transitive preferences (if a is preferred to b and b is preferred to c, it turns out that sometimes c is preferred to a), and some things like ethics end up at infinite dollar value... but whatever, this is just a model. You can make it as complex/realistic as you think is necessary.