• MangoCats@feddit.it
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          3 hours ago

          Try appraising real estate for a while, it’s a strong lesson in: something is worth whatever somebody is willing to pay for it. Can be higher than cost, can be lower than cost, but the willing buyer is the key to the whole valuation equation.

          • UnderpantsWeevil@lemmy.world
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            2 hours ago

            something is worth whatever somebody is willing to pay for it

            That’s a naive short-term approach to valuation.

            Real value has to be measured in some kind of revenue generation, or - at least - cost mitigation. Otherwise what you’re describing isn’t value but expense.

            the willing buyer is the key to the whole valuation equation

            The willing buyer is the key to perceived value. But suckering someone doesn’t increase the utility of what you sold them.