3 ms·
That's a fallacy assuming homo economics rationality, there can be valid reasons that accepting a lower price is more desirable than accepting a higher selling
by pyromine 10y ago
That's a fallacy assuming homo economics rationality, there can be valid reasons that accepting a lower price is more desirable than accepting a higher selling price.
There is in reality such a thing as dis-utility, which can mean any price over some $xx,xxx is actually less valuable due to marginal utility of each additional dollar actually being negative.
- PKop 10y agoWouldn't that only be if he had to work harder for those additional dollars? How could any higher purchase price have negative marginal utility in this case, realistically?
- pyromine 10y agoI know this is an unpopular idea, but even the belief that you're getting more than something is worth can cause negative emotions which is a negative marginal utility. The marginal utility is really the sum of the economic utility of the dollar and the emotional utility, you can in fact have a negative emotional utility that is greater than the strictly economic utility of the dollar. And to be honest, I don't think I'd ever have that feeling, but it can be a realistic phenomenon.