Captain’s log, stardate 20210307

My Theory Of Value

Axiom 1:

IF no one wants what you have to offer, THEN you’re probably not going to make lots of money.

Axiom 2:

IF people want what you have to offer BUT they’re broke, THEN you’re probably not going to make lots of money.

Axiom 3:

IF people want what you have to offer AND they’re rich, BUT lots of other people offer the same thing as you, THEN you’re probably not going to make lots of money.

Here’s the thing...

If your goal is to make lots of money, you can reverse engineer these three axioms to create a formula:

((DESIRE * MONEY) / OPTIONS)

In other words...

IF people really want what you have to offer,

AND they have tons of money,

AND they can only get it from you,

THEN the value of what you have to offer approaches infinity.

Yours,

—J

P.S. For the economists in the crowd...

In my (not so) humble opinion, this is a much clearer explanation of the so called “diamond-water paradox”.

“Marginal utility” is silly academic handwaving.

How come some people are willing to pay more money for diamonds than water?

Because they don’t want more water and they do want more diamonds.

Duh.

Value is simply a function of desire, buying power, and availability of options.

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