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Gresham's Law tends to no longer hold when the difference between good and bad is qualitative rather than quantitative, and when there are more than one degree
by invalidOrTaken 6y ago
Gresham's Law tends to no longer hold when the difference between good and bad is qualitative rather than quantitative, and when there are more than one degree of separation between the two.
Joe's Websearch can be cheaper than Google but is much crappier, parasitic mobile games are profitable but doomed to mayfly longevity, etc.
- ucarion 6y agoI'm not sure that's true. The more Florence debases the silver florin while Venice stays honest, the more I'm tempted to melt my old florins into Venetian silver ducats. I only get a better and better deal that way.
- invalidOrTaken 6y agoSure, but when you take a real qualitative jump---melting down silver coins for use in photography or photovoltaics---quality matters again.
- Ericson2314 6y agoIt's not about quantity vs quality, it's about legally mandated fungibility. Can be modeled just like arbitrage but equilibrium is at boundary.