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<p>[QUOTE="Tejas, post: 4060089, member: 84905"]Economists have pondered this questions for some 200 years. Why is a useless diamond more valuable than a useful glass of water? And why is the glass of water more valuable than a diamond to a person who is about to die of thirst?</p><p><br /></p><p>The answer is marginal value. The two prices, i.e. USD 25 vs. USD 5400 are (to a large extent at least) determined by the last additional or marginal unit. Put differently, I have no trouble finding another and another and another low quality follis of Anastasius, but it may be next to impossible to find another Anastasius follis of the quality sold for USD 5400 at the CNG auction.</p><p><br /></p><p><br /></p><p>PS But I admit - taking off my economist's hat and putting on my coin collector's hat - I find USD 5400 too high a price for this coin, but again at least two guys saw it differently. This is another important lesson from economics' value theory, value is "subjective" and the buyer must have valued the utility that he derives from owning this particular coin higher than the Utility that he derives from owning USD 5400.[/QUOTE]</p><p><br /></p>
[QUOTE="Tejas, post: 4060089, member: 84905"]Economists have pondered this questions for some 200 years. Why is a useless diamond more valuable than a useful glass of water? And why is the glass of water more valuable than a diamond to a person who is about to die of thirst? The answer is marginal value. The two prices, i.e. USD 25 vs. USD 5400 are (to a large extent at least) determined by the last additional or marginal unit. Put differently, I have no trouble finding another and another and another low quality follis of Anastasius, but it may be next to impossible to find another Anastasius follis of the quality sold for USD 5400 at the CNG auction. PS But I admit - taking off my economist's hat and putting on my coin collector's hat - I find USD 5400 too high a price for this coin, but again at least two guys saw it differently. This is another important lesson from economics' value theory, value is "subjective" and the buyer must have valued the utility that he derives from owning this particular coin higher than the Utility that he derives from owning USD 5400.[/QUOTE]
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