3 ms·

A market in which value is completely uncorrelated with cost of production is an empty market.

• CWuestefeld 15y ago
  Not at all. Art, fashion, antiques, and a slew of others that I won't bother to think of, have absolutely no correlation. Virtually every other market has only a small degree of correlation: the primary drivers are supply and demand, not underlying cost. Can you name a market that is entirely driven by cost alone? (Note that I say "market", as opposed to a government-driven exchange)
  • cageface 15y ago
    Antiques that were made of high quality materials by skilled craftsmen are more expensive now for the same reasons they were originally. A tailored wool suit costs more than a t-shirt and jeans. A hand-painted painting by a skilled artist cost more than a sweatshop knockoff. Supply is a function of profit potential. Production cost isn't the only factor but pretending it's irrelevant is ridiculous.