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Well scarcity is generally the best indicator. For a long time software developers have been a scarce resource and therefore hiring good engineers is competiti

Well scarcity is generally the best indicator. For a long time software developers have been a scarce resource and therefore hiring good engineers is competitive. It's true that some market forces and potential value of what is created are factors else nobody would pay for the premium, but he generally scarcity rules here. For a contrived example, why is caviar astronomically more expensive than bread? It's not the cost of production. It's not the fact that people like it more than bread. It's just scarce.

lotsofpulp 6y ago
Caviar is astronomically more expensive because it is both scarce AND people willing to buy it are able and willing to pay a high amount for it. Ability and willingness of buyers to pay is just as important as low supply. If caviar was scarce, and the only people interested in buying it had no money, then it would simply be unavailable. Or maybe whatever little supply there is would sell for as much as the buyers could afford.
- sammorrowdrums 6y ago
  Correct, that's what I meant by: > It's true that some market forces and potential value of what is created are factors else nobody would pay for the premium Although, amazingly demand can be manufactured to some extent (where potential demand has to exist of course). De Beers managed it with 'A Diamond Is Forever' where they managed to become the de facto engagement ring stone. Scarcity + good marketing does seem to be a magnet for the wealthy.
Sohcahtoa82 6y ago
Does caviar even taste that good? Just seems like one of those things rich people buy to show how rich they are. I find it hard to believe that they actually taste good enough to justify the price. Like...I had foie gras for the first time a few years ago, and while I thought it was pretty good, it definitely wasn't mindblowly good, and definitely wasn't worth the price. (Later, I looked up what foie gras actually was and decided I'd never eat it again)
- vkou 6y ago
  > Does caviar even taste that good? Just seems like one of those things rich people buy to show how rich they are. Yes, but it's an acquired taste.

lotsofpulp 6y ago

Caviar is astronomically more expensive because it is both scarce AND people willing to buy it are able and willing to pay a high amount for it. Ability and willingness of buyers to pay is just as important as low supply. If caviar was scarce, and the only people interested in buying it had no money, then it would simply be unavailable. Or maybe whatever little supply there is would sell for as much as the buyers could afford.

sammorrowdrums 6y ago
Correct, that's what I meant by: > It's true that some market forces and potential value of what is created are factors else nobody would pay for the premium Although, amazingly demand can be manufactured to some extent (where potential demand has to exist of course). De Beers managed it with 'A Diamond Is Forever' where they managed to become the de facto engagement ring stone. Scarcity + good marketing does seem to be a magnet for the wealthy.

Sohcahtoa82 6y ago

Does caviar even taste that good? Just seems like one of those things rich people buy to show how rich they are. I find it hard to believe that they actually taste good enough to justify the price. Like...I had foie gras for the first time a few years ago, and while I thought it was pretty good, it definitely wasn't mindblowly good, and definitely wasn't worth the price. (Later, I looked up what foie gras actually was and decided I'd never eat it again)

vkou 6y ago
> Does caviar even taste that good? Just seems like one of those things rich people buy to show how rich they are. Yes, but it's an acquired taste.