Stoller: That candy-bar is NOT worth $100 when some isolated crank buys it at that price.
: Don: If there are a sufficient number of "cranks" willing to spend $100 for a candy bar, candy bars *would* sell for $100. Because it is the consumer who determines value.
Say the production of candy-bars is 30¢ constant,30¢ variable, leaving 40¢ surplus.
Then the manufacturer determines how many cranks are willing to overpay.
Now the manufacturer's competition sells them for $90---which the crank, who's getting low on cash, readily purchases.
Then the first candy-bar manufacturer responds by charging only $80.
And so on.
When will the price-war stop?
Whereelse can it stop?
It stops at the point where production costs leave NOTHING for profit.
No matter what ANY CUSTOMER thinks.
Get serious you guys.