Re: Value calculation


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Posted by Marvin Amstey on April 12, 1999 at 18:43:37:

In Reply to: Re: Value calculation posted by John Downie on April 12, 1999 at 18:11:46:

: I think that the value function looks like a demand curve, sloping down and to the right as we move away from perfect condition. The slope of the curve is, in part, based on the rarity of the piece, I believe. Relatively common pieces will drop very quickly as condition declines, because one can wait for a perfect example. Very rare pieces, on the other hand, have a much shallower slope because there is no ready availability of alternatives and one may want even a chewed up fragment of a certain type.

: The other element to this curve is the shape. I believe it is concave with the drop from a perfect example to a 90% perfect piece being rather steep, but the drop to 80% somewhat shallower, etc. At some point this curve may change again and steepen to zero, as the rug becomes a fragment, unless it is a very rare example.

: Any further thoughts?

:
: : Does anyone have a conscious or subconscious formula for calculating the value of a rug which they dearly wish to collect but which is damaged or repaired a little, a moderate amount, a lot? (with the obvious proviso that I can afford "X"). In other words, "I really have been looking for a rug with this design, function, color, rarity, tribe - whatever - but I see all the repairs and damage; what am I willing to pay for it? (as a fraction of a complete, untouched, undamaged piece)?" Or - should the question be: "this is so repaired and damaged, that I'll keep waiting for the right one." Would anyone wish to propose such a formula? We all use such calculations to determine our purchases, but is it possible to articulate them? Good luck with your calculations. Marvin

Dear John,
I think your anaology to a curve found in economics goes a long way towards describing what we do with less-than-perfect pieces. I wonder if there's anyone else who has a different take on this or believes the function has a different shape.
Regards,
Marvin



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