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12 sats \ 1 reply \ @denlillaapan OP 5 Dec \ parent \ on: Music Has No Economic Value; Convince Me Otherwise (TDE, Joakim Book) BooksAndArticles
mmmm, not sure there's a meaningful distinction between consumption and production when the price hits (=goes below) 0.
That's Munger's point with the basketball players: production of basketball playing is actually consumption of it, since the non-elite guys are paying for the privilege to play. Similarly, musicians are paying for the privilege to play/make music, so what they're creating is consumption and not production.
Right but I wouldn't say it's of zero economic value. I think when people play music or sports, they're acting as both the consumer and the producer, and the analysis of economic surplus can proceed as usual. They produce and consume up to a quantity of music/sports until their private marginal benefit equals their private marginal cost. The total surplus is the integral over the marginal benefits minus the marginal costs.
The difference between an amateur and a professional is that the professional's playing adds marginal benefit not just to themselves, but also to others who watch/listen. They are then compensated in the market for that production.
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