I mean, yeah, kind of. The market is an indicator of value, but it can be wrong for a number of reasons (false scarcity, price fixing, monopolistic pricing, speculative investments, etc). Earlier you asked me how I would determine value, and I told you “consensus”. The market is a form of consensus, but not the only form. If I’m unsure whether the market is correctly valuing something, I’d try to get an expert consensus. For example, that’s actually what I do when I’m trying to buy a rare video game, because that market is volatile as fuck, and isn’t a reliable indicator of value.
I see. And what makes someone an expert on the value of a video game? Exactly what metrics do they use to determine this value and how do all the other experts come to this consensus? Do you even know?
If I did know, I wouldn’t need to consult them. Though, I’d imagine they use a similar technique to how I would appraise the value of a gaming PC, not that I’m an expert on consumer hardware pricing, but I’m fairly knowledgeable. But I would use historical data, performance metrics (although this wouldn’t apply to retro games), market conditions, conditions of the parts, and a certain amount of speculation.
The reason I’d look for a consensus is to account for outliers. If one expert is using some metric that causes them to over or under value a game, I’m less likely to get ripped off by having multiple expert opinions forming a consensus than if I relied on just that one expert’s opinion.
I mean, yeah, kind of. The market is an indicator of value, but it can be wrong for a number of reasons (false scarcity, price fixing, monopolistic pricing, speculative investments, etc). Earlier you asked me how I would determine value, and I told you “consensus”. The market is a form of consensus, but not the only form. If I’m unsure whether the market is correctly valuing something, I’d try to get an expert consensus. For example, that’s actually what I do when I’m trying to buy a rare video game, because that market is volatile as fuck, and isn’t a reliable indicator of value.
I see. And what makes someone an expert on the value of a video game? Exactly what metrics do they use to determine this value and how do all the other experts come to this consensus? Do you even know?
If I did know, I wouldn’t need to consult them. Though, I’d imagine they use a similar technique to how I would appraise the value of a gaming PC, not that I’m an expert on consumer hardware pricing, but I’m fairly knowledgeable. But I would use historical data, performance metrics (although this wouldn’t apply to retro games), market conditions, conditions of the parts, and a certain amount of speculation.
The reason I’d look for a consensus is to account for outliers. If one expert is using some metric that causes them to over or under value a game, I’m less likely to get ripped off by having multiple expert opinions forming a consensus than if I relied on just that one expert’s opinion.