Economics Questions

Re: Higher Order Goods, What Determines What They Are Worth?

Don Lloyd — Fri, 19 Feb 2010 06:21:25 GMT

No, it's not the cost of the complementary factor, the plain-hotdog in this case, but its subjective value, which in this case happens to be that of a first order good in its own right.

Regards, Don

Re: Higher Order Goods, What Determines What They Are Worth?

Stephen — Fri, 19 Feb 2010 04:51:43 GMT

So it depends on the value spread of the first order good and the cost of complementary factors. So what?

Higher Order Goods, What Determines What They Are Worth?

Don Lloyd — Fri, 19 Feb 2010 02:03:21 GMT

See my blog entry below for a brief argument that neither the value nor the price of higher order goods can, in general, be imputed from the value of an associated first order good.

http://mises.org/Community/blogs/donlloyd/archive/2010/02/06/the-subjective-value-of-mustard-and-its-implications.aspx

Regards, Don