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> The market doesn't value everything optimally Examples: My time, the skills of guys who chase balls around in sneakers, the skills of scientists who develop

> The market doesn't value everything optimally Examples: My time, the skills of guys who chase balls around in sneakers, the skills of scientists who develop the Theory of Relativity, the Theory itself, my child's education, or my child.

adventured 10y ago
> the skills of guys who chase balls around in sneakers That's a poor example and you're wrong. A very, very, very large, consistent, long duration market says that they're worth a lot. Quality entertainment can be worth a vast amount of money, and it has a very real/tangible value to it. Whether you personally think a specific entertainment is quality is purely subjective. What's not remotely that subjective, is the scale of the market, its historical record, and the reasonable future forecasts for its business prospects.
- hackuser 10y ago
  > A very, very, very large, consistent, long duration market says that they're worth a lot I agree with that. My point and the point of the GP is that the market isn't good at valuing some things. The 'market' is just a tool, a technology, not a God or scripture. Any tool works well for some tasks and less well for others. Also, the concept 'free market' is a theoretical abstraction that doesn't exist in reality; the NBA, for example, operates a monopoly in a market distorted heavily by law, regulations, a collective bargaining agreement, and market power. As someone said, Theory is a useful servant but a bad master, liable to produce orthodox defenders of every variety of the faith.[1] [1] Harry Guntrip, as far as I know
nradov 10y ago
Yes due to salary caps which distort the free market, NBA stars are underpaid. http://fivethirtyeight.com/features/kawhi-leonard-like-all-the-best-nba-players-is-vastly-underpaid/ http://fivethirtyeight.com/features/kawhi-leonard-like-all-t...

3 ms·

> The market doesn't value everything optimally Examples: My time, the skills of guys who chase balls around in sneakers, the skills of scientists who develop

by hackuser 10y ago

adventured 10y ago
> the skills of guys who chase balls around in sneakers That's a poor example and you're wrong. A very, very, very large, consistent, long duration market says that they're worth a lot. Quality entertainment can be worth a vast amount of money, and it has a very real/tangible value to it. Whether you personally think a specific entertainment is quality is purely subjective. What's not remotely that subjective, is the scale of the market, its historical record, and the reasonable future forecasts for its business prospects.
- hackuser 10y ago
  > A very, very, very large, consistent, long duration market says that they're worth a lot I agree with that. My point and the point of the GP is that the market isn't good at valuing some things. The 'market' is just a tool, a technology, not a God or scripture. Any tool works well for some tasks and less well for others. Also, the concept 'free market' is a theoretical abstraction that doesn't exist in reality; the NBA, for example, operates a monopoly in a market distorted heavily by law, regulations, a collective bargaining agreement, and market power. As someone said, Theory is a useful servant but a bad master, liable to produce orthodox defenders of every variety of the faith.[1] [1] Harry Guntrip, as far as I know
nradov 10y ago
Yes due to salary caps which distort the free market, NBA stars are underpaid. http://fivethirtyeight.com/features/kawhi-leonard-like-all-the-best-nba-players-is-vastly-underpaid/ http://fivethirtyeight.com/features/kawhi-leonard-like-all-t...