Don,
The point that I was apparently trying to make was that everyone who has both an unboarded window and available cash will, for any given price of plywood, subjectively rank the two states of a) buying the plywood and b) keeping the cash that would be needed to buy it. As the market price of plywood increases, more and more people will change their ranking preference to holding the cash. At some price point, the market for plywood will reach a point at which no further buyers are willing to pay the lowest price that any potential seller is asking.
Yes, I understand that. I guess that I'm looking for a general statement about the market, such as, "The market "efficiently" allocates resources," which appears intuitively to be true in the hurricane example, but I cannot lay out the argument in words, because subjective demand cannot be compared between individuals.
The words "efficient allocation" imply that those who most strongly "deserve" or "desire" the good will obtain it, but in order to draw such a conclusion, "deservingness" and "desire" have to be compared between individuals. The Austrian school, however, states that such a comparison is impossible, and no such statement cannot be made.
Wildstar |
