PDF: Bio-cost, an economics of human behavior
Businesses talk a lot about the cost of a product or service. Behind the talk is the concept of “value exchange”, that is, giving a benefit in exchange for a cost. We could spend $2.00 on a bus ride but fork over $12.00 for a taxi, because the value to us—convenience, comfort—is at least the difference in price. In both cases we pay to get what we want, which is to get from one place to another. What’s that about?