Price Doesn’t Reflect Value, and We’re Paying a Steep Price for Confusing the Two

This exploitation is indeed profitable, but there is a very high price to be paid for abusing our trust.

Price and Value–now there’s a twisted tale. We’ve been trained to compare price and buy the lower priced option as the better value, but price doesn’t reflect value, and we’re paying a very steep price as individuals and as a nation for confusing the two.

In economic theory, price is a signal, a flow of information between the producer, seller and buyer. Like all economic theory, this sounds ...