Computer Value (was Re: value of RK05)

From: Chuck McManis <cmcmanis_at_mcmanis.com>
Date: Sat May 6 19:20:34 2000

[Sorry if I screwed up the subject filters :-)]

Several things are being confused here "value", "markets", and
"courtesy"

Older minicomputers definitely have intrinsic "value" these days, John
certainly has sales on his books to indicate that, and we have Ebay
showing us what one can expect. Sometimes Ebay and the world is
inverted, for example on Ebay you can buy a MicroVAX 4000/60 bare for
about $100. Off Ebay you will not find one for less than $250 (I've
looked :-). If you find a PDP-8 somewhere you can probably offer less
than $800 for it and get it, on Ebay you can't get it for less than
$1000. This disparity comes from the condition that the "market" for
minicomputers is not "rational." (my terms but I'll define them) A
rational market is one in which all potential buyers have visibility to
all potential sellers. Thus, buyer demand pushes prices up, seller
competition pushes prices down. The net result is the "fair market
value" for something. Rational markets exist when some external force
constrains the buyers and sellers and information about the market is
widespread. For example you can only trade stocks on a stock exchange,
everyone knows that, and thus all buyers and sellers "meet" in a single
market. Computers are not so fortunate, in an irrational market buyers
are not aware of other sellers who might have lower prices so prices can
be artificially "high", and sellers might not know of other buyers so
prices can be artificially "low." Ebay is "irrational" in this
definition. Fair enough?

Then there is something else entirely, its called courtesy. (or "good
will") Amongst like minded individuals, humans form communities, this is
one and its common theme is 10+ year old computer technology. Within a
community transactions take place and they have two components, "money"
and "good will." If I give someone on the list a PDP-8 then no money has
changed hands but hopefully a lot of good will has, perhaps that person
will reciprocate at some later date by supplying something I could
really use. "Friends" can and often do exchanges that are entirely good
will based (even when there is money involved, as in "I'll buy lunch
this time, you get it next time.")

So if we want to characterize the social aspects of this we can define
two poles. On one end we have a person with whom your transactions are
all "good will", we will call that person your friend. On the other end
we have a person with whom your transactions are all "money", we will
call that person a vendor. There are friends and vendors on this list
and some folks somewhere in the middle.

It makes no sense to take issue with John if he wishes to transact his
business in all cash. That makes him a pure vendor. And the nice thing
about vendors is that you don't "owe" them anything after all and if you
turn around and resell what you got for a huge profit then there is no
issue. Just as it doesn't make sense to feel "sorry" for someone who
gives away a minicomputer to someone who could appreciate it. There
currency is less tangible but in the long run more valuable.

Finally, as a caretaker of machines I do appreciate that some of my
machines have "real" value, but I don't seem them as an investment. To a
vendor the "value" out weighs the potential good will within those
machines. There is no right answer, and more importantly everyone is a
vendor sometimes and a friend at other times.

Lets just see if we can keep as much of this hardware out of the
shredder as possible ok?

--Chuck
Received on Sat May 06 2000 - 19:20:34 BST