TIL about the Diamond-Water Paradox in economics. Even though life cannot exist without water but can easily exist without diamonds, diamonds are, pound for pound, vastly more valuable than water

Read more: https://www.britannica.com/topic/diamond-water-paradox

What do you think?

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  1. It’s not really a paradox any more, though. It’s used as an example of the influence of scarcity on marginal pricing. You’re right, though, it’s often used as a zinger early on in Econ 101 🙂

  2. They aren’t even as valuable as they are marketed. There was a whole thing where they said you should spend 3 months salary on a diamond, but diamonds are abundant. It was a marketing ploy, and now diamonds are “a woman’s best friend”

    My wife wanted an ethically sourced diamond, so we went with a lab created diamond. Same composition as a diamond but formed in a lab. They’re actually extremely hard to tell the difference.

    Even those are expensive

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