Many academic subjects are taught as standalone modules, independent of any other discipline because that would just be inconvenient. But it's impossible to pry apart the various elements that stitch the fabric of our society together. So I came up with a theory. It deals with the related notions of price, cost and value.
The first two are simple because they are transparent. The price of something is labelled, or at least made available by the seller, for anything one could consider buying. Similarly, the cost of something is clear to the buyer since it constitutes the amount paid to acquire the product or service in question. Where it gets tricky is when we tackle the notion of value.
Value is subjective. Everyone has a different notion of value because it is intrinsically linked to our own personal perception of the world. Value is something that isn't measured in money, but in personal satisfaction (or dissatisfaction) related to or caused by something. The value we assign to things is what determines the price that we are willing to pay for these things.
It gets tricky when we understand that the price we pay for something becomes the cost that we label it with. The seller, however, has a different cost, and the price he or she is selling for is partly linked to the value the seller attributes to his or her contribution in making this good or service available to you.
Both parties look at their spending and weigh it against the value they assign to the benefit they hope to gain from this spending. If the value exceeds the spending cost, they engage in the transaction.
Applying this to everyday life, and transforming price and cost into emotional amounts similar to the notion of value, we can make decisions far more effectively. This is linked, in part, to Baruch Spinoza's theory on Affect and the power of activity.
When we consider a chore or a task, the cost is the time and effort we must put into it (cleaning the house for an hour). The price is what we give up in terms of opportunities by focusing on this chore or task (not watching TV). The value is the benefit we will derive from having accomplished this task (a clean house). Here, the key calculation is weighing the value of the task against BOTH the price and cost of said task: Value less (Cost + Price). If this calculation is positive, we will perform the task. If it is negative, we will not.
There are many ramifications to this. Such calculations and considerations apply also to business opportunities (where price is often mentioned as an 'opportunity cost'), sentimental relationships (value of commitment less effort involved and range of alternative companionship) and wider socio-economic policies (value of an infrastructure project less cost of implementing it and price of disrupting the area during its construction).
In short, by incorporating the emotional value of goods and services into our decision making process, along with price and cost, we achieve more effective results through better choices.
----
Stepping back, I know realise how very flat and boring my writing style became for this essay. Nice idea, yawning description. It's a wonder you're still reading. Try some of my short stories to compensate. Or a mint. Maybe a marshmallow? Up to you.
