Cwalen wrote:It is easy and simple to calculate, and it can lead to someone traveling, raising a group, founding a town and transporting goods. Just to find that they could have gotten a better deal by simply wandering though where their target resource is and gathering it themselves.
If you're talking about the DOW, then that doesn't make sense. The DOW is the value of the time it would take to gather it themselves. Add in transportation time, and trading at DOW will always be cheaper than going there to gather yourself. People think that doing something themselves rather than trading for it is somehow "cheaper", which I am completely baffled by. Turns out there just isn't any real difference between working a day for 260 grams of bauxite, spending a day of gathering salt to trade for it, or spending a day gathering it yourself. You've spent a day of your time for the same result in each case. Yet people will work on something they're awful at, rather than collecting or making something they're good at to trade for it, or they'll travel a couple of towns over on foot for a couple days worth of a resource rather than pay a trader a 20% markup on it and save themselves the travel time.
I suppose the libertarian ideal of the rational consumer is no less a fantasy in cantr than it is in real life.
But to answer your question about DOW and say, propane is worth more judging by how much it increases iron production (which, I ought to point out, is not the only way it is used, it is also a cooking and engine fuel. Why should any one of these be chosen over the others for the comparative analysis?), then why would anyone ever buy it? You will spend more time earning the things to buy it rather than just making it yourself, so no sane buyer would purchase it unless the alternatives were just that prohibitively expensive and propane was rare in the area. But then, you're only able to make that cost comparison via the increase in iron production because you're assigning a set DOW value to iron. What if you took the same approach and judged iron by the increase in productivity via machines and tools that you could build with it?
People use DOW because it is really the only solid basis available and that is how they compare it to the cost of making it themselves. If you sell things for above the DOW, then a rational person should always prefer to make it themselves and nobody should ever buy it. If you sell it below the DOW, then everyone should buy it and nobody should make it. And the example you gave is partially flawed because raw meat actually does have zero practical value as well. It has to be cooked first, and that does take time. But assuming you actually could eat raw meat, that shouldn't raise the cost of meat (unless meat were rare, and then due to its rarity you would have to treat it as a special case, no trader worth a damn values goods on DOW alone) it should drop the demand for potatoes. Why spend time picking potatoes when you can kill an animal for (effectively) free and just eat the raw meat?
And yeah, maybe people shouldn't be so uptight about the DOW values. That's fine. Just more people for those of us who do pay attention to take advantage of.

"What I really don't understand is what kind of recipe do you want because you talked about porn, phones and cooking and I became lost" - Vega
"Fate loves the fearless" - James Russell Lowell