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This is a faulty argument. Value to an individual is very different to value to a market. Value in this sense is the aggregate of the individual values to all
by dann0 6y ago
This is a faulty argument.
Value to an individual is very different to value to a market.
Value in this sense is the aggregate of the individual values to all of the buyers and all of the sellers.
Price and value only match when supply and demand are at equilibrium.
- dnautics 6y agoWhat aggregate do you use? Mean? Median? Mode? Second moment? Wealth-weighted average? Buying-likelihood weighted average? How do you avoid Simpson's paradoxes?
- dann0 6y agoYou make a good point, but obviously different datasets and scenarios require different methods, and the detail of any approach is less important than starting out with valid assumptions.