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The economic notion of value is wealth-weighted. It's true, rationing would struggle to maximize economic value by allocating to well-off hoarders and scalpers
by jjoonathan 3y ago
The economic notion of value is wealth-weighted.
It's true, rationing would struggle to maximize economic value by allocating to well-off hoarders and scalpers. But it also wouldn't properly incentivize consumption minimization, warehousing, and production, and that's the real rub. It's complicated. Just be careful about fudging "economic value = value," because this seemingly harmless approximation actually smuggles in an assumption on the scale of "free market can do no wrong."
- MichaelZuo 3y ago> The economic notion of value is wealth-weighted. No it isn't, nor was the parent necessarily restricting the scope to economics. Many animals such as beavers, bees, ants, dolphins, etc., have notions of value. Way before human society existed and likely will continue to have them long after.