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philh comments on Open thread, May 15 - May 21, 2017 - Less Wrong Discussion

1 Post author: Elo 15 May 2017 07:06AM

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Comment author: philh 19 May 2017 10:03:06AM 0 points [-]

Alice would probably not want to pay $1,000 for a loaf that she prefers only slightly to the $1 loaf. She'd likely be willing to pay $1.05 or $1.10 for it.

I did not intend that to be taken literally. I picked an extreme example to make the effect intuitively obvious, not because it was realistic.

If you think the effect doesn't exist, or is too small to be worth mentioning, at realistic levels, then that seems worth saying. But it doesn't seem very interesting to say that my example was unrealistic.

Bob would be willing to pay $2 or $3 or maybe even $4 since he wants it so badly.

There exists an amount that Bob can value a loaf of bread, where he's willing to pay $1 but not $2. Nothing I said is inconsistent with Bob valuing the bread at that level.