Books, Brochures, and Chapters>Book:  Bernoulli , Daniel (1738), Exposition of a new theory on the measurement of risk, Retrieved on 2012-01-13
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  • Folksonomies: mathematics measurement

    Memes

    13 JAN 2012

     Value is Based on Utility, Not Price

    The determination of the value of an item must not be based on its price, but rather on the utility it yields. The price of the item is dependent only on the thing itself and is equal for everyone; the utility, however, is dependent on the particular circumstances of the person making the estimate. Thus there is no doubt that a gain of one thousand ducats is more significant to a pauper than to a rich man though both gain the same amount.
    Folksonomies: value qualitative
    Folksonomies: value qualitative
      1  notes

    $100 to a Rich Man is less valuable than the same sum to a poor one.