Amount Quote by Daniel Bernoulli
“The determination of the value of an item must not be based on its price, but rather on the utility it yields. The price of the item is dependent only on the thing itself and is equal for everyone; the utility, however, is dependent on the particular circumstances of the person making the estimate. Thus there is no doubt that a gain of one thousand ducats is more significant to a pauper than to a rich man though both gain the same amount.”
About This Quote
Source Treatise: Theory of Risk and Utility, Daniel Bernoulli, 1738
Value of an item depends on personal utility, not price; wealth’s impact varies with individual circumstances.
In simple terms: Value is about usefulness, not cost.
Key Takeaway
Assess usefulness, not just price.
Themes
economics
utility
inequality
Mood
analytical
pragmatic
Type
economic
educational
When to use this quote
- budgeting
- policy making
- personal finance
Key Concepts
subjective value
risk assessment
Questions to Reflect On
- How do you measure personal benefit?
- When does price mislead perceived value?
A Different Perspective
Utility can be hard to quantify objectively.
