In message <fnvlgv$ece$1@[EMAIL PROTECTED]
>, Remus Shepherd
<remus@[EMAIL PROTECTED]
> writes
>In rec.arts.sf.science Brett Paul Dunbar <brett@[EMAIL PROTECTED]
>
wrote:
>> >On Jan 27, 1:08?pm, Brett Paul Dunbar <br...@[EMAIL PROTECTED]
>
>> >What makes you think you know better than BernardZ what *he* wold
>> >rather have or not have? Perhaps what he really values is ordering
>> >people around. It's not at all uncommon.
>
>> There is a basic principal of economics called revealed preference,
what
>> people actually value is demonstrated more by what they do rather than
>> what they say. If he really wanted somebody to cook and clean for him
he
>> could pay for it, he obviously does not consider the value worth the
>> cost. The saying "put your money where your mouth is" epitomises the
>> same concept.
>
> And this is why I hate economics -- their 'principals' are about as
>scientific as a bible study group.
>
> I'd love to have a live-in butler, and I think the value is more than
>worth the cost. But I cannot afford the cost. It's out of my range.
>My preference doesn't come into it because my options are limited to
>those I can realistically afford.
You don't think the value for you is worth the cost to you, the cost
might be greater than your entire disposable income and you would rather
remain solvent than have a butler. You also don't chose to save up and
hire a butler for a short period as a treat to yourself. Much as you
might not be able to afford to live in a resort hotel but could afford
the occasional holiday.
>
> Similarly there may be other things that affect revealed preference.
>Maybe I was misled by a vacuum cleaner salesman -- false data creates
>false 'preferences'. Perhaps my girlfriend won't allow a live-in
servant,
>so that I am not following my preferences but another persons'.
You are following your preferences in this case your preference for
having your girlfriend over your preference for having a servant.
Preference can be altered by the information available.
>
> 'Put your money where your mouth is' is only applicable if you have
>sufficient money and if you capable of directing it. The poor and the
>situationally constrained are never adequately considered in economics.
Poorer people still have the ability to make judgments about how they
use their disposable assets. They do have less resources available so
have to forgo rather higher preferences than a wealthier person would.
--
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Brett Paul Dunbar
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