- Jul 5, 2012
- 24,743
- 40,159
- AFL Club
- Sydney
- Other Teams
- Kidding, right?
Yes even a truly free market can’t fully take opportunity cost into account. There is always an element of fortune telling involved in trying to calculate opportunity cost.I wonder to what degree the value of sport these days is more to do with the consequences of not having it. Are TV networks paying beyond reasonable value because the consequences of a lack of sport outway the consequences of over paying for sport.
On the other hand, the value of a product is based on what people are willing to pay, irrespective of their reasons for paying, so whatever they pay, thats the fair market value.