Value is such an interesting concept. It’s both relative and absolute, concrete and abstract, and amorphous, all at the same time.

Is value defined by the price of some basket of goods and services in the United States? Of course not. On the Internet, there are no borders, and value doesn’t see borders either.

I see value as being defined by opportunity cost. For a particular good or service, what is the opportunity cost of investing in it? Where else could that investment be put to use? If there are many opportunities, it’s worth less, and if there are few, it’s worth more. This explains why a lottery ticket is worth more to someone with few opportunities, and less to someone with many. What might be rational for one person might be seen as irrational by another, but the value of the lottery ticket exists nonetheless.