Expect some inflation

The art of pricing something is a dark one. Forget the academic models for a moment and think how the seller of an item tries to price their offering. They of course want the maximum they can get (perhaps as a one off but more often as a continuing series of sales). The buyer wants the lowest price (except in the case of Veblen goods, something that probably is a factor in this specific market).

But what the seller definitely has to try and do is work out what value the potential buyer puts on the item or service. You can\’t charge people more than they think it\’s worth.

Which means that this survey is likely to lead to a tad of inflation.

The book \”You Are Really Rich, You Just Don\’t Know It Yet\” from former ad executives Steve Henry and David Alberts aims to show there are more important things money.

\”The book is about a new value system, an alternative to a purely financial system,\” said Henry.

Mmm, OK, understand the concept.

Reading a book is worth £53,660 whereas going to the cinema comes in at half that £21,615.

There appears to be a great deal of room to increase the prices of both books and cinema tickets.

having sex – £105,210;

That bird on the corner in the mini skirt is definitely going to be raising her prices.

5 thoughts on “Expect some inflation”

  1. S0 what we have here then is a book on value, written by people with no idea of what value is. That’s good.

    Asking people to rate hypothetical values is inherently broken. The only way to find out what value somebody applies to a product is to put them in the position of having to actually trade for it. The key thing is that value only exists at the instant of trade, and is entirely dependent on the individual’s circumstances at the time. The same individual may think a tin of beans is worth 18p one day and not worth 18p the next, depending on how much money they have and what their priorities are and whether they have a particular craving for beans on toast today. You can’t find this out from a survey. Asking price does not equate to some general value. There is no “value of beans” or “value of sex” to be discovered.

    Maybe if I was a billionaire, or Eliot Spitzer, £105,210 for some particularly fruity crumpet might appeal to me at some particular moment. But since I’m not in a position to pay that much money, the question is undefined. I cannot truthfully answer it, for I do not know and cannot know the answer to the question.

    Why do these idiots get into the papers?

  2. They say there are things more important than money and then go on to put monetary values (however witless) on them. Case in point: “Having a pet is worth £78,640 as a companion but a priceless baby hits the heights at £123,592.”

    If it’s worth 123 grand it’s not fucking priceless, is it, you twits?

    The problem is, naturally, that they’re trying to measure things which are incommensurable, all against a notional yardstick which is not fit for purpose. For in what bizarre world is a lottery windfall exclusive to reading a book or going on holiday or enjoying peace and quiet or reading a book, which is the only way this could remotely make sense (i.e. if the opportunity cost of getting a socking great lump of money was not being able to spend it on things you enjoyed)?


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