Hypernomics

CHAPTER 4Value

“I conceive that the great part of the miseries of mankind are brought upon them by false estimates they have made of the value of things.”

Benjamin Franklin

HUMAN TRAITS

This book aims to enhance our predictions about human economic behavior. Since these actions cover millions of markets, billions of buyers, and trillions of transactions, this may seem a monumental undertaking. People see markets in unique ways. Some clients bought their first mobile phone in the 1980s; others just made their first purchase, and some will never own one. The prices customers are willing to pay for goods and services are reflected in their eagerness or reluctance to enter a market. Enthusiasts bought the first mass‐produced, flat‐screen televisions for thousands of dollars with only 720 lines of resolution and with less than 40 inches across on their diagonal measures. Now customers can buy a much larger set with more resolution for far less than they paid for an inferior product over a decade ago.

Different people see things differently. The same people see things differently over time.

Since economics only has meaning with people, it makes sense to examine people more closely to see if we have ways to make sense of the human condition and appeal to what we already know about ourselves. We will find patterns in humanity that we intuitively knew, but perhaps had not reflected on graphically.

Imagine you are a preschool teacher, and today you are attending a large convention ...