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To: Wildstar who wrote (14003)	1/26/2002 2:11:59 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 74559

Wildstar - The subjective marginal utility of taking additional newspaper is almost zero, unlike taking an additional can of coke. Once a newspaper has been read once, nothing is gained from reading another copy of the newspaper. However, if cokes sat in an open rectangular tray, people would take additional cokes and hoard them for use later. Exactly. More generally, all values are subjective. Almost all economic goods are subject to the law of diminishing marginal utility. The rate at which the subjective marginal utility diminishes with quantity is far greater for newspapers than it is for soft drinks. Using market capitalization to value an entire company, or an index of companies on the basis of the last market trade price independent of volume is fundamentally suspect. If it weren't for an expectation of wanting to resell stock into the market at inflated prices in the future, company buyouts would only involve paying full price for an effective controlling interest, not for all shares. Regards, Don