4 ms·
> actors transact only when the net outcome is more valuable to each of them At least, the perceived value, but often times in real economies this does not mat
by flatline 13y ago
> actors transact only when the net outcome is more valuable to each of them
At least, the perceived value, but often times in real economies this does not match up with actual value at all. People hoping to better their fortunes end up making poor decisions to that end, particularly -- but certainly not limited to -- poor people without much financial savvy. This part of the simulation seems perfectly accurate to me.
- Symmetry 13y agoWell, there are three things to think about. There's the current open market price of something, there's the actual subjective value of something, and there's the subjective value that the buyer hopes something will end up having before the transaction is made. Poor people are certainly sometimes bitten by lack of savy, but more often bitten by the exigencies of their lives pushing them towards shorter planning horizons.
- JackFr 13y agoFor a very rigorous yet still accessible understanding try Debreu's Theory of Value: http://cowles.econ.yale.edu/P/cm/m17/m17-all.pdf http://cowles.econ.yale.edu/P/cm/m17/m17-all.pdf