Bouclage du modèle

• In a world of information asymmetry (under perfect information the market would be perfectly efficient and there would be no celibacy), what matters is not resources, but perception of resources. That's where confidence steps in, obviously. (And don't forget the importance of correlations.)
• Rational (explainable) reasons doesn't mean the reasons have to be conscious. Biological/chemical reactions (such as love) have biological/chemical causes (genetic programming). The gorgeous blonde playmate who marries the rich old guy and says she loves him can be sincere - it's just that the money (or resources in general, including time at the bottom of the production process) is what causes the love (or desire).
• Price/cost is not value. You can make money ("The Rules", anyone?) writing on the confusions and correlations of the two, though. (By the way, international trade makes markets more efficient, as always.) And correlations there are, at least perceived: a high cost can be perceived as a signal of high value. Incidentally, M-Budget can be interpreted as an example of the converse: lowering value (ugly packaging, anyone?) in an attempt to lower the perceived price. (Price, cost and value from the perspective of the buyer.) Another example would be paid newspapers, loathing free newspapers, while of course their major source of revenue is also advertisement... The price's role seems to be more to signal value than to provide revenue.

2007-03-25