Order Without Organizations with Aneesh Karve (WiM141)
The "What is Money?" Show
00:00
The Diamond Water Paradox
Adam Smith came up with the concept of marginal utility in 1867. He said there's only one human value, and this would be critical when we ultimately get to me says because I can't compute based on two things. People don't buy it based on general value they buy based on specific value. How much is the unit of this good worth to me at this moment in time? And so he resolved that diamond water paradox by saying diamonds really have higher exchange value.
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