My new pea shooter

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09-23-2007, 11:33 PM

#16

edwinsmith

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Quote:

Originally Posted by HOHN

Obviously each person thought THEY were getting the better deal, don't you think?

If the other guy thought the Ruger was worth more, he would have asked for money in addition to the Colt, right? Vice versa, even.

If you think about it, every time we buy or sell something, we make a judgement of value. When I buy milk, I'm telling the grocer that I think my $5 is worth less than the gallon of milk he's selling, so I'm acting out the belief that I'm coming out better on that deal. Conversely, the Grocer is at the same time telling ME that my $5 is worth more than his gallon of milk, so he's more than willing to sell.

This applies all the time to everything we buy. It's all just people participating in what they believe are mutually beneficial transactions.

Justin

It's amazing to me how often the concept of price and value are confused. This is most evident in cases where price gouging is perceived. But then people who go to public school usually don't get taught this very important fact. This is why pawn shops exist. They provide the valuable service of purchasing unneeded items for desperately needed cash. They make a profit by selling the items to less desperate people at more fair prices. Payday loans which charge higher interest are also a good example of distressed pricing. Whenever do-gooders pass laws limiting these types of transactions, poor people suffer as a result.

"Always keep your weapons and clothing where you can find them in the dark." R.A. Heinlein

Edwin