Prices & Value

Why prices are so useful is they signal and signify value, or the value people have in them.

For example, the reason why the price for Bitcoin is so high — people value it greatly?

Or the reason why people pay high rents in desirable locations and places — because it is desirable!

Price as a filter

Also price is also often a great filter; it simplifies life — typically things on sale make easier purchasing decisions, and makes us feel more satisfied with our decision making process.

Also a simple calculus — often things which are more expensive are better.

Prices as pure information?

A life without prices would be a terrible life — the tyranny of day to day living … and impossible societal living!

Prices don’t lie.

A life without prices is tyranny?

Revealed preferences: what people actually spend their own money on reveals what they truly value!

Prices as solidified values?