In alt.sports.basketball.nba.seattle-sonics on 7 Jul 2005 00:50:09 -0700
Chris Hafner wrote:
>Terraholm wrote:
>
>> Seems to me any blame should be with the sonics if they are not willing to
>> pay his market value.
>
>I understand that in pro sports somebody's market value is equal to the
>maximum anybody is willing to pay you;
Market value is a slippery thing. In game theory and econometrics, there is
something known as The Winner's Curse, which says that the winner of an
auction (and auction here is defined broadly to include any time a bunch of
different people competitively bid on something -- like Nate) -- the winner
of the auction *always* overpays. Why? Because the winning bid need be only
1 cent more than the second highest bid, but it was almost certainly much
higher than that.
WRT value -- and here I'm getting way off topic -- people seem to want
universal truths and Platonic essences: they want the value of something to
be $X, period. But reality is not like that. Product Y's value to me is not
the same as it's value to you. A dinner date with one of the Marvelettes
(any one, I don't care) is probably worth a lot more to me than it is to
you. What is the market value of a dinner date with one of the Marvelettes?
Kind of an average of all the resources that all interested people would be
willing to exchange in order to get that date (*not* the maximum value). But
that average does not represent its value to me -- nor to you. It is an
average, an abstraction.
Market value does not necessarily tell us anything important, like Nate's
relative value to the Sonics or the Blazers. The Sonics felt the winning bid
was too high, the Blazers felt differently. Both are correct, since they
were bidding on two different things: the Sonics were bidding on Nate's
potential value to the Sonics, the Blazers were bidding on Nate's potential
value to the Blazers.
>> There are other rich owners and a million and a half a
>> year added would not have broke the sonics.
>>
>> And my guess is there is more to this than the money.
>
>What do you think?
>
>It seems odd to me, because during the season and even during the
>draft, McMillan seemed more at ease with the makeup and attitude of the
>team than ever before.
>
Don't make me bring up marginal utility. Please. For god's sake, don't make
me do it!
--
all the best,
ed
Epitome:
Nice kid, but about as sharp as a sack of wet mice.
Email:
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